longhorn11

Maybe you have already done this, but the easiest way is to look at aa.com and look for mile saver awards for available dates. After you find availability, call BA and have the phone reps book it for you. Tell them it was a website error and you need them to handle it without any type of fee. The BA/partner date check is not accurate and I've only had success once using the BA website to book an award ticket through AA.

Happy

Wrong. Citi has not issued 1099's on TYPs/AA miles earned from the CC side.

I have redeemed TYPs on hotels and hotel gift cards in thousands worth and have never received a 1099. A very large portion of my TYPs are from bonuses of all kinds on the CC sides including sign up bonus, spend bonus, flight point bonus. They are NOT taxable.

Your information is misleading. Citi only tax the portion of TYPs earned from banking products, and if that were not reported before, then Citi would catch up on you at redemption.

Even yourself in the other thread admitted that you have to figure out how to separate the TYPs earned / redeemed from the banking products from those from CC. The method is a very basic and simple one, it is Pro-rated on % basis. Of course if you do not keep meticulous records on how the points come together, you are SOL to contest with Citi which, surprisingly has been quite accurate in only incl TYPs from banking products to the 1099. The issue has first come to light at least 3 or 4 years ago from July 2007's first and the major devaluation. People found out 7 months later in Jan 2008 that they were getting 1099s on TYPs redeemed that were earned from their checking account activities and their saving accounts funding bonuses. At the time Citi did not send out 1099s the following year on the EARNED TYPs from banking products the previous year - and it was during the time people were doing a lot of CC fundings to open multiple online saving accounts to double-dip. Later Citi sent out 1099's on TYP redemption in the form of pro-rata based on the % of TYPs from Banking and % of TYPs from CC in your account.

May be your issue stemmed from some TYPs from the Banking products side were never reported on 1099 from several years ago and you continue to earn TYPs on your bank accounts linked to your TYP account.

Yes, the only way to avoid this kind of headache is do NOT earn any bonus from Citi banking products that would linked to the non-taxable earning from the CC side. That would mean you severe the connection between your TYP account and your Citi bank accounts.

However if 100% of your TYPs are from CREDIT CARDS, there is currently NO tax implication to speak of.

glu800

Thanks so much for clearing this up Happy. I had always thought that Citi only issued 1099 on bank accounts, so I got extremely worried when I saw daveland's post. I have received a 1099 two years ago for AA miles I received for opening a Citibank savings account. I have yet to hear of ANYONE receiving a 1099 for credit card bonuses or redeeming points from credit card bonuses. Thanks.

MilesTalk

It's not misleading - it's my experience.

The fact is that I had emptied my Thank You balance in 2010. In 2011, I earned approx 14,000 points from banking and approx. 200,000 from credit card spending (bonuses in the form of 5 points per dollar spent). My 1099 was for $741 and change. If you do the math, even though I (and can't imagine anyone would, but some people have that much time on their hands) don't keep a spreadsheet of each point earned in 2011, it's impossible for $741 to have been achieved from spending even all 14,000 points from banking. At the maximum 1.3c redemption value, it could have been close to $170 in value from banking - nowhere near $741 or even the $600 1099-MISC threshold.

Only earning and burning from 2011 could apply since the rest was spent in prior tax years and they cannot "catch up" by consolidating previous tax years into one.

Now, I'm still hoping this can be fixed but Citi is NOT making that easy and more than one rep has *insisted* that credit card bonuses are taxable and that is why my 1099 is what it was.

I DO think that at the root, the 1099's are tied to the bank side and what is screwing me is my linked bank/CC account on the Thank You side, so it's probably safe if you don't have a Citi banking product - but this is what is happening right now with me and that is how Citi reps are explaining it.

So let's not tell people it can't happen to them even if it hasn't happened to you. I'd earned and burned plenty of TYPs in prior tax years without ever getting a 1099 (in fact far MORE than is being 1099ed now) so for whatever reason they decided this was the year to start.

Everyone should know the POTENTIAL risk, even if unlikely for non-bank customers.

ThePointsCollector

Is 50K TY point offer still available?

lwildernorva

Yes, http://www.flyertalk.com/forum/miles...irst-year.html, but if you're doing it for the new transfer possibilities, I might hold off: http://boardingarea.com/blogs/viewfr...ore-after-all/.

Seems uncertain at this moment because there are other indications that Citi was just trying to put the genie back in the bottle and that the news will be announced officially sometime after April 1 anyway.

boilers

Well if it has been pulled it is unfortunate. I was looking forward to at least have this option.

ThePointsCollector

well, I have 2 AA cards already, so if I get this one it won't hurt I guess.

Update. Im seeing 30K miles in that link.

lwildernorva

Try this instead; I only linked to the thread that indicated the offer was still good. This link, buried towards the end of the thread, shows an active 50K offer for both Visa and MC: http://creditcards.citicards.com/usc...293FD07E2270CC.

ThePointsCollector

Thanks.

Approved.

CVG_Kid

I would add one caveat to this statement. If the credit card bonus is earned without a spend requirement then Citi would issues a 1099 and treat it as miscellaneous income for tax reporting purposes. Largely this is not the nature of the current bonus' so you don't see it occurring.

Let me provide two examples:

1. FTer #1 get's a ThankYou Premiere card with 50k enrollment bonus after $2500 in spending. The 50k are NOT taxable.

2. FTer #2 get's a ThankYou Premiere card with 50k enrollment bonus after first purchase. This is a hypothetical offer. I don't know of such an offer. The 50k ARE taxable.

The central concern surrounding the tax implications is if Chase ever decides they need to issue 1099-MISC.

CVG_Kid

If you call ThankYou they can process a request for Citi to issue an itemized breakdown of your 1099 components. I can't attest to the timeframe for receipt.

Part of the confusion is that Citi does lump all their products together and issue a single 1099-MISC to clients. I'm 99% certain that this includes both ThankYou and AAdvantage bonus earned on the banking side.

No CSR will be able to provide that breakdown but a ThankYou CSR can issue a request for it to be sent to you. I suspect a Citibank CSR could do the same but have no experience from that side.

lkar

Well, what the heck -- even if it's only $625 and I can't transfer to BA, I'm gong to go for this. Spend requirement is pretty low and I don't have many citi cards, so even if it's just the $625, it's a pretty good deal.

MilesTalk

I'm on my fourth "investigation" now. So far they have broken down by taxable and non-taxable but the numbers don't match up even remotely with what came from bank vs CC. My current investigation is asking specifically for what came from the bank and what came from the credit card to determine clearly if they are taxing the credit card "bonus spending" where I got 4 bonus points per dollar spent. Two different CSRs on two different days (one in a special 1099 department) claim to be certain those credit card bonus points are taxable. I of course disagree. I will certainly post when and if I get that info.

Happy

Can you point to actual cases reported on Scenario 2 ?

If that is the case then several Chase cards would be "1099 eligible", namely the 80K Priority Club and the 70K Marriott card, as well as last year's 50K Continental Card and this year's 50K UA Explorer card - they all only require first purchase to earn bonuses. So far nobody receives a 1099 MISC from Chase on those and Chase is very diligent in sending out 1099s on ANY cash bonuses received when opening bank accounts, clearly spelled out in the documents of the offer.