[Consolidated] 1099s for miles & cash rewards from all banks
Sep 21, 2014, 3:21 pm
#754
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Sep 22, 2014, 6:44 pm
#755
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It would have to be UR's from Banking. I don't have any contact with Chase except CC's. I've cashed out ~ 100K in UR's both for travel and GC's in 2012 and never got anything. I've also done the same with Citi with no 1099's. I beleive if you check back early in this thread the only Citi 1099's were from Banking turned into TYP's and maybe AA miles? mia is very knowledge able and you can trust what he says.
Last edited by jjmiller69; Sep 22, 2014 at 6:55 pm
Sep 23, 2014, 10:06 am
#756
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Sep 24, 2014, 3:06 pm
#759
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No bank wants to be the first one to issue a 1099-MISC for cc bonus miles, and the IRS does not appear at all interested in pressing the issue when it comes to first-purchase and minimum-spend cc bonuses.
The tax line separates banking bonuses (checking, CDs) from credit card bonuses.
The tax line separates banking bonuses (checking, CDs) from credit card bonuses.
Oct 11, 2014, 9:28 pm
#760
Join Date: Sep 2000
Location: NYC, USA
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No bank wants to be the first one to issue a 1099-MISC for cc bonus miles, and the IRS does not appear at all interested in pressing the issue when it comes to first-purchase and minimum-spend cc bonuses.
The tax line separates banking bonuses (checking, CDs) from credit card bonuses.
The tax line separates banking bonuses (checking, CDs) from credit card bonuses.
ialto
Oct 12, 2014, 9:50 pm
#761
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Join Date: May 1998
Posts: 1,139
Isn't the issue that miles on an bank account are deemed interest (income) hence a 1099. but for a credit card earning, it is really a rebate on the fees that the merchant(and indirectly, you) are paying, so there is no "income" per se. similarly, for fidelity, the miles are on an investment account, not a banking account, so could be seen as a rebate on the fees you will pay them, hence no 1099.
ialto
ialto
My experience with Fidelity is that their fees are indirect and are generally fully tax-deductible, unlike many investment advisors whose direct fees are limited on Schedule A due to the 2 percent of AGI rule, and limited by AMT. So any reduction in the basis of those Fidelity fees as a result of miles having a "value" would yield an unfavorable tax result.
It does not appear that Fidelity has ever issued a 1099 or provided information to investors instructing them that the awarded miles have a specific value that must reduce investment fees or reduce the tax basis of any assets purchased within the Fidelity account. It is not clear if the mutual fund in the letter ruling ever valued the miles in its correspondence with investors.
http://www.irs.gov/pub/irs-wd/9920031.pdf
Oct 13, 2014, 10:30 am
#762
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Join Date: Feb 2001
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Isn't the issue that miles on an bank account are deemed interest (income) hence a 1099. but for a credit card earning, it is really a rebate on the fees that the merchant(and indirectly, you) are paying, so there is no "income" per se. similarly, for fidelity, the miles are on an investment account, not a banking account, so could be seen as a rebate on the fees you will pay them, hence no 1099.
ialto
ialto
Mar 4, 2015, 3:44 am
#764
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