topic Re: AMEX sending out 1099s in Credit Cards

Amex sending out 1099’s for credit cards

Shadowfactor — Thu, 31 Jan 2019 23:21:22 GMT

https://onemileatatime.com/amex-referral-1099/

Very interesting development. It’s currently only for Refer a friend program points.

The point valuations :
They have MR and Starwood pegged at 1CPP
Hilton is valued at 1.2CPP

AMEX sending out 1099s

Andypanda — Thu, 31 Jan 2019 22:08:36 GMT

https://www.doctorofcredit.com/american-express-sends-out-1099s-for-referral-bonuses-hilton-1-25-cpp-everything-else-1-cpp/

From what I have seen before now, CC rewards are considered discounts by the IRS, thus not taxable. Hopfully this dosn't screw anybody that files before getting the 1099.

Re: Amex sending out 1099’s for credit cards

wasCB14 — Fri, 01 Feb 2019 01:39:26 GMT

1.2 for Hilton is cruel and unusual punishment.
 
1 for MRs isn't bad at all *for me*...heck, I get 1.25 guaranteed with Schwab.

Re: Amex sending out 1099’s for credit cards

red259 — Fri, 01 Feb 2019 00:27:48 GMT

Thank god they aren't issuing 1099s for signup bonuses. I wouldn't even apply for hilton cards if they are valuing hilton points that high because it could cost me more in taxes than the points are worth!

Re: Amex sending out 1099’s for credit cards

NRB525 — Fri, 01 Feb 2019 00:49:03 GMT

So if you refer a friend, you get a tax bill.

Taxing Friendships !

What will they think of next?

Re: Amex sending out 1099’s for credit cards

wasCB14 — Fri, 01 Feb 2019 01:36:52 GMT

I don't think it's wrong for referrals to be taxed in principle. It sort of is a sales commission with no cost or much effort involved.

But how the points are valued is quite another matter!

Most people cant redeem MRs for cash at 1 cpp. A fixed 1 cpp requires travel. If I had earned referral points on Hilton (I can't, I don't have a Hilton CC) I would try to return the points if they would cancel the income.

(Single in CA with a healthy 2018 income and a low opinion of HH points. Keeping the points might make sense for others.)

Re: Amex sending out 1099’s for credit cards

Revelate — Fri, 01 Feb 2019 02:52:07 GMT

I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.

Re: Amex sending out 1099’s for credit cards

Anonymous — Fri, 01 Feb 2019 05:24:43 GMT

@Revelate wrote:
I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.

From what I recall, banking bonuses have always been taxable (Citi TY points with Citigold was a common example) I guess it's not a "rebate" as credit card rewards seem to be, but then neither are cc SUBs, but they seem OK!

Re: Amex sending out 1099’s for credit cards

wasCB14 — Fri, 01 Feb 2019 05:41:19 GMT

@Anonymous wrote:
@Revelate wrote:
I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.
From what I recall, banking bonuses have always been taxable (Citi TY points with Citigold was a common example) I guess it's not a "rebate" as credit card rewards seem to be, but then neither are cc SUBs, but they seem OK!

CC SUBs generally require at least some spend, so a SUB is just a big rebate...though it's hard to call 60k AA miles a "rebate" when they are worth more than my $95 AF and $18 of purchases. Not sure what could happen there.

Re: Amex sending out 1099’s for credit cards

Anonymous — Fri, 01 Feb 2019 13:22:14 GMT

@wasCB14 wrote:
1.2 for Hilton is cruel and unusual punishment.
 
1 for MRs isn't bad at all *for me*...heck, I get 1.25 guaranteed with Schwab.

That report of being valued at 1.25 was a mistake. They are actually valuing them at .67

Re: Amex sending out 1099’s for credit cards

Anonymous — Fri, 01 Feb 2019 13:35:55 GMT

I don't think AmEx had a choice, this may be part of the requirement in the tax bill passed at the end of 2017.

Re: Amex sending out 1099’s for credit cards

DaveInAZ — Fri, 01 Feb 2019 15:22:26 GMT

@Revelate wrote:
I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.

Check your online statements, I did several banking bonuses last year and most 1099s were available online in e-statements. The "funny" one was Cap One 360 MM, I got an email that the 1099 was available online but since I closed the account my C1 online account only shows CCs. So I called in, rep told me you can't get the 1099 online if no banking accounts so it would be mailed, but at least she told me the amount which is all I really need. One more 1099 to go from local CU and then I can file, ready for that refund!

Re: Amex sending out 1099’s for credit cards

Anonymous — Fri, 01 Feb 2019 15:26:50 GMT

@Revelate wrote:
I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.

Re: Amex sending out 1099’s for credit cards

Remedios — Fri, 01 Feb 2019 16:01:19 GMT

@Anonymous wrote:
@Revelate wrote:
I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.
Log in to chase, it should be on there. I got mine weeks ago :/

Me, too. In was in my account two weeks ago, but they also mailed it last week.

Re: Amex sending out 1099’s for credit cards

red259 — Sat, 02 Feb 2019 00:11:27 GMT

@Anonymous wrote:
@Revelate wrote:
I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.
From what I recall, banking bonuses have always been taxable (Citi TY points with Citigold was a common example) I guess it's not a "rebate" as credit card rewards seem to be, but then neither are cc SUBs, but they seem OK!

Agreed this has always been an issue around banking bonuses.

Re: Amex sending out 1099’s for credit cards

QuakerOatmeal — Sat, 02 Feb 2019 02:58:32 GMT

I was actually wondering about this the other day. I get nearly 300-500 dollars in cash back every month on my BOA premium rewards card, but haven’t received anything tax related. Is this the norm with cash back/reward cards?

I did get a 1099 from chase for the “500 dollar bonus” for opening an account though.

Re: Amex sending out 1099’s for credit cards

Anonymous — Sat, 02 Feb 2019 15:05:07 GMT

@QuakerOatmeal wrote:
I was actually wondering about this the other day. I get nearly 300-500 dollars in cash back every month on my BOA premium rewards card, but haven’t received anything tax related. Is this the norm with cash back/reward cards?

I did get a 1099 from chase for the “500 dollar bonus” for opening an account though.

Yes, stuff you spend money to get (cash back from spend, and credit card SUB) are currently considered rebates and are thus not taxed. Bonuses for opening bank/brokerage etc accounts are taxable (I assume Chase was a bank account)

Re: AMEX sending out 1099s

Anonymous — Sat, 02 Feb 2019 15:17:13 GMT

Looks like it's ony for referrel bonuses, not any other kind of cash back rewards or signup bonuses.

Re: Amex sending out 1099’s for credit cards

Revelate — Sat, 02 Feb 2019 18:26:00 GMT

@Remedios wrote:
@Anonymous wrote:
@Revelate wrote:
I am supposed to get a 1099 for my Sapphire Banking bonus, or at least that's what the paperwork stated.

That said it's 1/31 and I haven't seen it yet.
Log in to chase, it should be on there. I got mine weeks ago :/
Me, too. In was in my account two weeks ago, but they also mailed it last week.

Oh hrm. I've actually been checking my account regularly for tax forms and I have nothing.

That said when I re-looked at the bonus terms:

90 days holding money, then within 45 days of that to receive bonus, which for me napkin maths out to March 1st as the latest date for it. Actually technically I didn't even cross the 90 day mark till this year anyway, not sure how anyone would've on that since they opened it up 10/1 I think?

When did you two transfer the money in vs. receiving the 60k bonus UR?

Re: AMEX sending out 1099s

iv — Sun, 03 Feb 2019 22:35:12 GMT

@Andypanda wrote:
From what I have seen before now, CC rewards are considered discounts by the IRS, thus not taxable.

Yes... Points or cashback are considered discounts on the purchases made.

But a referral bonus is not a discount off a purchase.