[Consolidated] 1099s for miles & cash rewards from all banks
Jan 18, 2012, 11:01 pm
#91
Join Date: Dec 2009
Posts: 290
Got $1000 1099-MISC today for 40K AA Miles (checking/saving account opened in 2010, but miles posted in 2011). Another $750 1099-MISC I can't figure it out what's for yet (10K AA Miles posted in 2011 and 20K TYP maybe?)
Stay away from Citi.
Stay away from Citi.
Jan 19, 2012, 12:12 am
#92
Join Date: Aug 2010
Location: New York
Programs: AA
Posts: 220
I received 20,000 miles last year for openning citi checking account. And I just got a 1099-MISC with $750 income. So $750 = 20,000!?? That's $0.0375 per mile! Anyone can tell me how significant will it impact on my income tax return?
Jan 19, 2012, 5:56 am
#93
Join Date: Apr 2007
Posts: 562
I think this thread still hasn't heard about what ultimately happened when people did file their 2010 Tax Returns will all these 1099s. Did their Tax Preparers advise them to value the miles as Citi does, and therefore did they have to pay incremental Tax on this non-cash reward based on their individual Tax Rate?
On another note, I vaguely remember reading somewhere that the reason why Citi reduced the Checking bonus to the oddball 23,500 miles was to avoid having to issue a 1099 which apparently applies if you receive 25,000 miles or more, but several posts here indicate that this information may not be correct.
On another note, I vaguely remember reading somewhere that the reason why Citi reduced the Checking bonus to the oddball 23,500 miles was to avoid having to issue a 1099 which apparently applies if you receive 25,000 miles or more, but several posts here indicate that this information may not be correct.
Jan 19, 2012, 8:31 am
#94
Join Date: Feb 2011
Location: NYC suburbs
Programs: UA LT Gold (BIS), AA LT Plat (CC SUBs & BD), Hilton Dia (CC), Hyatt Glob (BIB), et. al.
Posts: 3,274
I think this thread still hasn't heard about what ultimately happened when people did file their 2010 Tax Returns will all these 1099s. Did their Tax Preparers advise them to value the miles as Citi does, and therefore did they have to pay incremental Tax on this non-cash reward based on their individual Tax Rate?
Last edited by Dr Jabadski; Jan 19, 2012 at 8:38 am
Jan 19, 2012, 11:57 am
#97
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,028
My wife and I got these yesterday - I think the numbers were $725 and $650. That's a lot of taxes.
This will make me seriously rethink using CITI products. If the teasers aren't really free, I doubt I'll keep going for them.
I'm not sure why we got this for teasers and not on-going miles (which seems clear due to the round numbers involved). Why is a 50K promo taxable, but not 13,546 miles in a month related to charges also taxable, in their eyes? I'm glad it's not, of course, but I just don't understand the distinction.
This will make me seriously rethink using CITI products. If the teasers aren't really free, I doubt I'll keep going for them.
I'm not sure why we got this for teasers and not on-going miles (which seems clear due to the round numbers involved). Why is a 50K promo taxable, but not 13,546 miles in a month related to charges also taxable, in their eyes? I'm glad it's not, of course, but I just don't understand the distinction.
Jan 19, 2012, 12:22 pm
#98
Moderator
Join Date: Jun 2003
Location: Miami, Mpls & London
Programs: AA & Marriott Perpetual Platinum; DL & HH Gold
Posts: 48,952
Jan 19, 2012, 12:43 pm
#99
Join Date: Oct 2004
Programs: DL Gold
Posts: 880
Jan 19, 2012, 5:13 pm
#100
Join Date: Mar 2005
Location: ORD
Posts: 835
DH got his 1099-MISC for $1000 for the 40,000 mile checking/savings 'bonus'. I also opened a checking account and received 20,000 miles...I can hardly wait for the mail tomorrow. I would also like to know what the outcome was for people who challenged this last year. I'll have DH call Citi tomorrow..but not holding out much hope.
Jan 19, 2012, 8:39 pm
#101
Join Date: Jul 2011
Posts: 20
Received a 1099 today for $625 for the 30K bonus for opening a citibank bank account. I have to say, probably not worth doing the bank account thing, particularly if you are in one of the higher brackets and aren't a Republican presidential candidate paying taxes in the teens. Just sayin'...
Jan 19, 2012, 8:43 pm
#102
Join Date: Jul 2011
Posts: 20
My tax preparer told me that reporting a different income to the IRS than listed on a 1099 is a big red flag to the IRS and it wasn’t worth arguing over. The IRS doesn’t know if I got 40,000 miles or $1000.00. Citibank is increasing their tax deduction and Citibank couldn’t care less if I get audited! Think I’ll stick with BankDirect, no 1099 for miles.
Jan 20, 2012, 6:43 am
#103
FlyerTalk Evangelist
Join Date: Jul 2006
Location: Upper Sternistan
Posts: 10,028
IIRC, last year, we only got 1099-MISCs for checking and savings accounts, and not for credit card bonuses and rewards.
I really haven't carefully tracked what I did in 2011, but I'm wondering if that may be the case again this time. I'd certainly be happy to hear that - I'm basically shut out of any more deposit account bonuses anyway, so maybe I can keep going with the credit card gravy train and not get one of these love letters next year.
I really haven't carefully tracked what I did in 2011, but I'm wondering if that may be the case again this time. I'd certainly be happy to hear that - I'm basically shut out of any more deposit account bonuses anyway, so maybe I can keep going with the credit card gravy train and not get one of these love letters next year.
Jan 20, 2012, 8:22 am
#104
Join Date: Jul 2011
Posts: 20
Received a 1099 today for $625 for the 30K bonus for opening a citibank bank account. I have to say, probably not worth doing the bank account thing, particularly if you are in one of the higher brackets and aren't a Republican presidential candidate paying taxes in the teens. Just sayin'...
Jan 20, 2012, 12:09 pm
#105
Join Date: Jan 2011
Location: NYC
Programs: *G, UA Plat, Hertz Pres
Posts: 170
1099 for "Cash Back" (Chase Membership Rewards)
I have ~115,000 points on Chase Ultimate Rewards which I can put directly into my checking account valued at $1,150. Pretty sweet. My concern is using it this way vs putting into miles (115k United miles) will get me a 1099 and not be worth it. Anyone have experience with this? Thanks!
EDIT: ULTIMATE REWARDS, not Membership Rewards
EDIT: ULTIMATE REWARDS, not Membership Rewards