@DaveInAZ wrote:
@Anonymous wrote:
And once I redeem it into the fidelity investment account, I assume that whatever I redeem into that account won't be taxed as a 1099?
Interesting question. Since I never get a 1099 on rewards issued as a statement credit oin other reward cards, I wouldn't think rewards credited to a Fidelity account would generate a 1099. But are you eligible for an IRA account? (No 401k/retirement plan at work?) I have an IRA with Fidelity and when I get a Fidelity Amex I'm going to have the rewards credited to my IRA account which Fidelity will credit as an current year IRA contribution up to the max annual allowable contribution, lowering my taxable income - even better than no 1099.
The rewards from the Fid Amex are no different from any other credit card, so there is no special tax concern. Obviously, once you put it into an investment account, or interest-bearing account like CMA, you may be taxed on gains or interest, just as if you added cash from some other source.
