Instantly Earn 100-100,000 AAdvantage Miles
Feb 22, 2011, 7:00 pm
#49
Join Date: Sep 2010
Location: Cypress Hills Research Center
Posts: 5,295
I hope that everyone who takes advantage of this "offer" has read the T&C. In particular the part which states that the customer is responsible for all taxes and the ARV of the miles awarded is 2.75 cents each! If you've won 100 miles, that's only $2.75 and, since the 1099-MISC reporting threashold is $600, you probably (maybe) won't get one. However, if you've won 25,000 miles that's $687.50 in reportable income and 100,000 miles will generate $2,750 in reportable income.
Don't know if AA will actually send out 1099-MISC's for those who get miles valued at $600 or more, but you might want to check before rolling the dice.
Don't know if AA will actually send out 1099-MISC's for those who get miles valued at $600 or more, but you might want to check before rolling the dice.
Feb 22, 2011, 7:05 pm
#50
Join Date: Jul 2006
Location: LIT
Programs: DL SkyMiles, AA, CX Asia Miles, United MileagePlus, HHonors
Posts: 243
I hope that everyone who takes advantage of this "offer" has read the T&C. In particular the part which states that the customer is responsible for all taxes and the ARV of the miles awarded is 2.75 cents each! If you've won 100 miles, that's only $2.75 and, since the 1099-MISC reporting threashold is $600, you probably (maybe) won't get one. However, if you've won 25,000 miles that's $687.50 in reportable income and 100,000 miles will generate $2,750 in reportable income.
Don't know if AA will actually send out 1099-MISC's for those who get miles valued at $600 or more, but you might want to check before rolling the dice.
Don't know if AA will actually send out 1099-MISC's for those who get miles valued at $600 or more, but you might want to check before rolling the dice.
Feb 22, 2011, 7:10 pm
#52
Join Date: Nov 2000
Location: New York USA
Posts: 2,933
Feb 22, 2011, 7:12 pm
#53
Join Date: Sep 2010
Location: Phoenix, AZ
Programs: Starwood, Delta, American Airlines, USA, United
Posts: 223
Feb 22, 2011, 7:15 pm
#54
FlyerTalk Evangelist
Join Date: Mar 2000
Posts: 17,404
Ha! My family of 5 got a total of 700 miles (a couple of big 200 mile winners). 
Although if they really sent 1099s, you don't want to win this contest. Can you imagine the thrill of winning, and then being saddled with a crazy tax bill?
Although if they really sent 1099s, you don't want to win this contest. Can you imagine the thrill of winning, and then being saddled with a crazy tax bill?
Feb 22, 2011, 7:23 pm
#55
Join Date: Sep 2010
Location: Cypress Hills Research Center
Posts: 5,295
The reporting requirement is just that, a requirement. As set by the IRS. If AA is to follow the law, which I'm sure they will do, they MUST file a 1099-MISC if the value of the miles - as set by them in the T&C - exceeds $600. I suppose one could contact AA and try to convince them to re-value the miles to something less than $600. Good luck with that.
I'm sure this topic will resurface sometime in Jan-Feb 2012 when people get their 1099s.
Feb 22, 2011, 7:31 pm
#59
A FlyerTalk Posting Legend
Join Date: Apr 2004
Location: GVA (Greater Vancouver Area)
Programs: DREAD Gold; UA 1.035MM; Bonvoy Au-197; PCC Elite+; CCC Elite+; MSC C-12; CWC Au-197; WoH Dis
Posts: 52,115
Though to me, no amount of miles is worth patronizing Facebook.
