[Not implemented] Citi ThankYou Points To Be Transferable To BA, AA & Singapore Air
Mar 29, 12, 3:39 pm
#76
formerly known as daveland
Join Date: Oct 2003
Location: NY, NY, USA
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All - very happy to report that I have resolved my 1099 issue with Citi and it seems that credit card bonus points are NOT taxable afterall, so false alarm.
For details, I posted in the official 1099 thread here
For details, I posted in the official 1099 thread here
Mar 29, 12, 4:33 pm
#77
Join Date: May 2008
Programs: AA PLT 2MM
Posts: 2,023
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.
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.
I can assure you that statement #2 has no grounding in reality.
Well, was going to cite these examples, but, Happy has already beaten me to it.
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.
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.
Mar 29, 12, 7:24 pm
#78
Join Date: May 2011
Posts: 475
All - very happy to report that I have resolved my 1099 issue with Citi and it seems that credit card bonus points are NOT taxable afterall, so false alarm.
For details, I posted in the official 1099 thread here
For details, I posted in the official 1099 thread here
Mar 29, 12, 8:11 pm
#79
Join Date: Sep 2005
Location: CVG
Programs: AAdvantage, Delta Skymiles, CapOne Venture, Citi ThankYou
Posts: 486
As stated, there is not a current promotional offer meeting that criteria but the facts are sound and based in Citi's stated interpretation of the 1099 prize provisions. I tend not to argue these things. Time will tell.
Mar 29, 12, 8:20 pm
#80
FlyerTalk Evangelist
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Mar 29, 12, 8:48 pm
#81
FlyerTalk Evangelist
Join Date: Jul 2003
Location: Florida
Posts: 29,249
I cannot speak to actual cases except to say that Scenario #2 is the case with Citi's banking bonus' and you can see that they are producing 1099s. The distinction is Citi's interpretation of the 'prize/award' provisions of the 1099 which seem to be reluctantly supported by the IRS in the article below:
http://www.latimes.com/business/la-f...1163342.column
Note that the Citi spokesman makes the distinction based on 'purchases'.
So far it seems each bank has made their own interpretation of the code; Citi's being the most impactful. I have not information about Chase issuing 1099s but it would be a concern only if they adopted the same interpretation as Citi.
http://www.latimes.com/business/la-f...1163342.column
Note that the Citi spokesman makes the distinction based on 'purchases'.
So far it seems each bank has made their own interpretation of the code; Citi's being the most impactful. I have not information about Chase issuing 1099s but it would be a concern only if they adopted the same interpretation as Citi.
Your Scenario No.2 case has no case IMO.
Mar 30, 12, 8:37 am
#82
Join Date: May 2011
Posts: 475
Last edited by Saas; Mar 30, 12 at 3:45 pm
Mar 30, 12, 9:29 pm
#83
formerly known as daveland
Join Date: Oct 2003
Location: NY, NY, USA
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BTW - despite my resolution on the 1099 issue, we should still try and find out what Citi would value a transfer to BA or SQ at because, were you to have over $600 in points from banking in your account and were you to transfer in one tax year (likely if you are doing a redemption in J on either carrier), what the tax implications would be....
Mar 31, 12, 3:10 pm
#84
FlyerTalk Evangelist
Join Date: Mar 2006
Location: DFW
Programs: AA 1M
Posts: 30,997
Why is that a 1099 is issued on redeemed/transfered points not what is earned?
Mar 31, 12, 3:39 pm
#85
formerly known as daveland
Join Date: Oct 2003
Location: NY, NY, USA
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Apr 1, 12, 8:42 am
#86
Join Date: May 2011
Location: CT
Programs: HHonors Silver
Posts: 428
I did not see a way to transfer to BA/SQ on thank you website.
Apr 1, 12, 11:27 am
#88
Join Date: Apr 2010
Posts: 396
The rumor was for April 1st, but Citi was always quite vehement in denying such a development through their PR channels although it seems as if a lot of reps were confident that such a benefit would arise.
Here we are, April 1st, and there's nothing on the website, but I'm personally willing to wait until at least the start of the work week before dismissing everything as rumor.
Here we are, April 1st, and there's nothing on the website, but I'm personally willing to wait until at least the start of the work week before dismissing everything as rumor.
Apr 1, 12, 12:43 pm
#89
Join Date: Jul 2011
Location: NYC
Posts: 511
The rumor was for April 1st, but Citi was always quite vehement in denying such a development through their PR channels although it seems as if a lot of reps were confident that such a benefit would arise.
Here we are, April 1st, and there's nothing on the website, but I'm personally willing to wait until at least the start of the work week before dismissing everything as rumor.
Here we are, April 1st, and there's nothing on the website, but I'm personally willing to wait until at least the start of the work week before dismissing everything as rumor.
I think we should just wait it out and see what happens.
Apr 1, 12, 1:14 pm
#90
Join Date: Oct 2010
Location: GGG, DFW, IAH
Posts: 284
Do you have any other examples of this? The whole issue with 1099 was regarding the points EARNED through checking account promos, I have never heard of Citi (or anyone else) issuing 1099 for any points REDEMPTIONS whether these were redemptions within the programs or transfers to 3rd party program.
