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Established Member
jamlovesgrapes
Posts: 16
Registered: ‎09-21-2011

AMEX pending then canceled then F/R notice

So I applied for a Hilton Amex last month and online it pending then canceled after a few days. Then I got a notice in the mail to fill out the 4506-T  form and verification of address. I don't file income tax because I'm still a student, I get allowance, refund from school due to extra financial aid and work on and off for cash. Also, I have a lawsuit settlement payout which I put on as income on the applications and CSRs did not care at Chase, Citi, & BoA. I sent a letter explaining my income situation with proof of bank statement and a copy of the payout letter from my settlement, but they asked me to fill out the form and send it back even though I did not file income tax. Any chance that they will approve me for the card? My score is around 700 and inquiries are about 7 on EX. Thanks in advance!

JP Morgan Select 5K, CSP 5K, JP Morgan Ritz Carlton 5K, Southwest Premier 5K, Marriott Premier 5K, Chase Freedom 1.5K, Chase Ink Bold, Citi Hilton Reserve 7K, Citi Hilton Visa Signature 5K, Citi AA Platinum World MC 5K, Citi TY Preferred 5.75K, Discover IT 2.5K, BOA BankAmericard Travel 5K, BOA BankAmericard Cash 15K, Cap1 Cash Rewards 5K, PayPal Extras MC 4.4K, AMEX Blue Sky AU 11K
Frequent Contributor
jd5189
Posts: 470
Registered: ‎08-14-2012

Re: AMEX pending then canceled then F/R notice

I was always under the assumption if you made more than $5,000 you had to file a tax return. Since you did not file, you are claiming you made less than $5k. So I do not think AMEX approval with less than 5k in income especially if they want to see your non-existent returns.

In my wallet: Amex PRG & Zync, Amex BCE (19.2k), Chase Freedom (5k), PSECU Visa/PSL (20k)
Current Scores: Equifax: 738 (Fako) TransUnion: 721 (Fico) Experian: 717 (Fico)
Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: AMEX pending then canceled then F/R notice

Bank statements do not really prove anything, which is why they want tax returns. They seem pretty strict on getting them to finish the review. Depending on what the settlement was for it would have been reported to the IRS as your income, whether you filed returns or not.

Established Member
jamlovesgrapes
Posts: 16
Registered: ‎09-21-2011

Re: AMEX pending then canceled then F/R notice


jd5189 wrote:

I was always under the assumption if you made more than $5,000 you had to file a tax return. Since you did not file, you are claiming you made less than $5k. So I do not think AMEX approval with less than 5k in income especially if they want to see your non-existent returns.


My financial aid refund and my lawsuit settlement comes to about 60K. My refunds are less than 5K and I think lawsuit settlements are non-taxable.

JP Morgan Select 5K, CSP 5K, JP Morgan Ritz Carlton 5K, Southwest Premier 5K, Marriott Premier 5K, Chase Freedom 1.5K, Chase Ink Bold, Citi Hilton Reserve 7K, Citi Hilton Visa Signature 5K, Citi AA Platinum World MC 5K, Citi TY Preferred 5.75K, Discover IT 2.5K, BOA BankAmericard Travel 5K, BOA BankAmericard Cash 15K, Cap1 Cash Rewards 5K, PayPal Extras MC 4.4K, AMEX Blue Sky AU 11K
Established Member
jamlovesgrapes
Posts: 16
Registered: ‎09-21-2011

Re: AMEX pending then canceled then F/R notice


navigatethis12 wrote:

Bank statements do not really prove anything, which is why they want tax returns. They seem pretty strict on getting them to finish the review. Depending on what the settlement was for it would have been reported to the IRS as your income, whether you filed returns or not.


It was for a car accident. Lawyer said that it wasn't going to be taxed and just in case I get audited he gave me a letter and the copy of the check to hold on to.

JP Morgan Select 5K, CSP 5K, JP Morgan Ritz Carlton 5K, Southwest Premier 5K, Marriott Premier 5K, Chase Freedom 1.5K, Chase Ink Bold, Citi Hilton Reserve 7K, Citi Hilton Visa Signature 5K, Citi AA Platinum World MC 5K, Citi TY Preferred 5.75K, Discover IT 2.5K, BOA BankAmericard Travel 5K, BOA BankAmericard Cash 15K, Cap1 Cash Rewards 5K, PayPal Extras MC 4.4K, AMEX Blue Sky AU 11K
Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: AMEX pending then canceled then F/R notice

Amex are sticklers and won't count that as stable income. Try the Travelcity Amex from Barclay's if you 'need' an Amex :-)
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $5k| West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Valued Contributor
navigatethis12
Posts: 1,881
Registered: ‎01-24-2012

Re: AMEX pending then canceled then F/R notice


jamlovesgrapes wrote:


It was for a car accident. Lawyer said that it wasn't going to be taxed and just in case I get audited he gave me a letter and the copy of the check to hold on to.


Right, that would not be taxable. I am unsure if it would have been reported though. Anyway, they may not accept that as income unless it will be a steady stream for a few years. If it is just a lump sum, next year your income will immediately drop and that would most likely cause them concern. You could just go ahead and submit the form. The worst that happens is they say no and you do not get the card.

Frequent Contributor
jd5189
Posts: 470
Registered: ‎08-14-2012

Re: AMEX pending then canceled then F/R notice


jamlovesgrapes wrote:

jd5189 wrote:

I was always under the assumption if you made more than $5,000 you had to file a tax return. Since you did not file, you are claiming you made less than $5k. So I do not think AMEX approval with less than 5k in income especially if they want to see your non-existent returns.


My financial aid refund and my lawsuit settlement comes to about 60K. My refunds are less than 5K and I think lawsuit settlements are non-taxable.


Depending on the nature of the lawsuit determines its tax eligibility. Either way, Amex is strict and they will most likely not approve you without releasing your tax records. Amex has cancelled accounts due to people not releasing tax records so they probably would not open one. Amex typically does not care about bank statements either because they really do not "prove" income or ability to pay debt. Just because you will have $60,000 in a bank account does not mean that $60,000 willl be there tomorrow to pay any debt back. They are really looking for a hard number which is why they ask for you tax records.

In my wallet: Amex PRG & Zync, Amex BCE (19.2k), Chase Freedom (5k), PSECU Visa/PSL (20k)
Current Scores: Equifax: 738 (Fako) TransUnion: 721 (Fico) Experian: 717 (Fico)
Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Established Member
jamlovesgrapes
Posts: 16
Registered: ‎09-21-2011

Re: AMEX pending then canceled then F/R notice

Great thanks everyone. I'm just going to fill the form out because they are still requesting it and sending whatever I sent before together just to see if they can look through everything.

JP Morgan Select 5K, CSP 5K, JP Morgan Ritz Carlton 5K, Southwest Premier 5K, Marriott Premier 5K, Chase Freedom 1.5K, Chase Ink Bold, Citi Hilton Reserve 7K, Citi Hilton Visa Signature 5K, Citi AA Platinum World MC 5K, Citi TY Preferred 5.75K, Discover IT 2.5K, BOA BankAmericard Travel 5K, BOA BankAmericard Cash 15K, Cap1 Cash Rewards 5K, PayPal Extras MC 4.4K, AMEX Blue Sky AU 11K
Frequent Contributor
AZHeather
Posts: 304
Registered: ‎04-26-2012

Re: AMEX pending then canceled then F/R notice

The settlement is not taxable if it was for reimbursement for medical expenses and pain/suffering.  If any of it was for reimbursement of lost wages (past and/or future), then that portion is taxable and is required to be reported to the IRS.  You want to be careful reporting it to lenders as "income."  That can bite you if a lender ever decided to report you to the IRS for suspected "tax fraud."  Particularly if it is a sizeable amount.


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