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Citi CC softing me

aftermath
Established Contributor

Re: Citi CC softing me


@trumpet-205 wrote:

First of, preapproval means nothing. I repeat nothing. It does not guarantee approval.

 

Second AAdvantage is a much harder card to get, with minimum credit line of $2K. If Citi cannot issue you at least $2K of credit you will be denied. I believer lenders prohibit PC within the first 12 months because of CARD Act (no rate changing in the first 12 months).


Their VISA is a Signature, and their Mastercard is a World.  You will need a minimum $5k to be approved.

American Express Blue Cash Everyday $6600
Barclays US Airways Premier World Mastercard $14500
Chase Sapphire Preferred $5000
Chase Freedom Visa $1000
Chase United Explorer $8500
Citi AAdvantage Platinum Select Visa Signature $7500
Citi ThankYou Premier World Mastercard $7500
Message 11 of 25
teenastie
Established Contributor

Re: Citi CC softing me


@aftermath wrote:

@teenastie wrote:

BE CAREFUL!

 

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!


False!

 

They are only sending 1099's for checking account bonuses.  Even then, you don't have to claim them when you file taxes as the IRS themselves said that they wont regulate it.

 

Please double check your facts and quit scaring people.


Whoa Whoa Whoa!!! Calm down Aftermath... Do you have any recent literature for the bolded statement??? It appears my most recent attempt to demolish Citi as a company has been thwarted by you... or I made a mistake... or I read it somewhere : http://www.mercurynews.com/travel/ci_20079796. Is it possible you can CAPS LOCK the author of this site to death so we can rest easy Smiley Very Happy All kidding aside...

 

I hope everyone can sleep easy now Smiley Wink



Message 12 of 25
trumpet-205
Valued Contributor

Re: Citi CC softing me

Citi will hand out Platinum Visa for CL between $2K to $5K. Anything after $5K is Visa Signature.

 

To receive a Citi® Platinum Select® / AAdvantage® Visa Signature®, you must meet our applicable criteria bearing on creditworthiness. Your revolving credit limit will be determined by your annual salary and wages, your other annual income and a review of your debt, including the debt listed on your credit report. You will be informed of the amount of your revolving credit limit when you receive your card. Some revolving credit limits may be as low as $2000. Please note that cash advances may be limited to a portion of your revolving credit limit.

Message 13 of 25
AndySoCal
Valued Contributor

Re: Citi CC softing me

Yes it is true. If I remember what I read Citi is correct in doing so it sounded like but it was still waiting IRS confirmation.  There is a difference between miles earned as a result of purchases using the card and miles and bonus miles for apping for thie card.

FICO 8 EX 794 TU 794 EF 805
Discover IT Opened 9/1990 CL 19,000, JC Penney Opened 10/2008 CL 4700, US Bank Cash Plus Opened 8/2010 CL 12000, Citibank Double Cash Opened 5/2015 CL 11,100, Chase Freedom Flex Opened 09/2020 CL 10,500
Message 14 of 25
aftermath
Established Contributor

Re: Citi CC softing me


@teenastie wrote:

@aftermath wrote:

@teenastie wrote:

BE CAREFUL!

 

Citi is sending 1099's on customers who accepts their miles cards and making them pay taxes on the benefit at ridiculous rates!!!


False!

 

They are only sending 1099's for checking account bonuses.  Even then, you don't have to claim them when you file taxes as the IRS themselves said that they wont regulate it.

 

Please double check your facts and quit scaring people.


Whoa Whoa Whoa!!! Calm down Aftermath... Do you have any recent literature for the bolded statement??? It appears my most recent attempt to demolish Citi as a company has been thwarted by you... or I made a mistake... or I read it somewhere : http://www.mercurynews.com/travel/ci_20079796. Is it possible you can CAPS LOCK the author of this site to death so we can rest easy Smiley Very Happy All kidding aside...

 

I hope everyone can sleep easy now Smiley Wink


http://www.latimes.com/business/la-fi-lazarus-20120124,1,261989.column?track=rss&utm_source=dlvr.it&...

 

The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account.

 

And there's a good reason for that. In 2002, the IRS issued a policy brief noting that because there are "numerous technical and administrative issues" relating to miles, such as how they're valued and used, the agency "has not pursued a tax enforcement program with respect to promotional benefits such as frequent-flier miles."

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

In other words, the tax man won't come after you for undeclared miles.

 

Smiley Wink

American Express Blue Cash Everyday $6600
Barclays US Airways Premier World Mastercard $14500
Chase Sapphire Preferred $5000
Chase Freedom Visa $1000
Chase United Explorer $8500
Citi AAdvantage Platinum Select Visa Signature $7500
Citi ThankYou Premier World Mastercard $7500
Message 15 of 25
logan_720
Established Contributor

Re: Citi CC softing me

 


@trumpet-205 wrote:

First of, preapproval means nothing. I repeat nothing. It does not guarantee approval.

 

Second AAdvantage is a much harder card to get, with minimum credit line of $2K. If Citi cannot issue you at least $2K of credit you will be denied. I believer lenders prohibit PC within the first 12 months because of CARD Act (no rate changing in the first 12 months).


I was able to PC with BofA to a Cash Rewards card within 5 months of becoming a cardholder.

Message 16 of 25
teenastie
Established Contributor

Re: Citi CC softing me


@aftermath wrote:

http://www.latimes.com/business/la-fi-lazarus-20120124,1,261989.column?track=rss&utm_source=dlvr.it&...

 

The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account.

 

And there's a good reason for that. In 2002, the IRS issued a policy brief noting that because there are "numerous technical and administrative issues" relating to miles, such as how they're valued and used, the agency "has not pursued a tax enforcement program with respect to promotional benefits such as frequent-flier miles."

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

In other words, the tax man won't come after you for undeclared miles.

 

Smiley Wink


This article also states:

 

"The Internal Revenue Code recognizes rewards as taxable income," she said. "This recognition by the Internal Revenue Code is disclosed to customers prior to their election to participate in the promotion."

 

"An IRS spokeswoman told me only that the 2002 policy brief "still stands." She declined to comment on how this squares with the prizes-and-awards provision of Form 1099, or what taxpayers should do in light of Citi's reporting their airline miles as income."

 

"This opens up the notion that all miles are taxable,"

 

"As I say, this potentially affects millions of people — virtually anyone with airline miles. It'd be nice to know where we all stand. "

 

Seems like this author needs to be CAPS LOCKED and Red Bolded to death aswell...

 

I don't know about y'all but I'm getting scared again Smiley Surprised



Message 17 of 25
aftermath
Established Contributor

Re: Citi CC softing me


@teenastie wrote:

@aftermath wrote:

http://www.latimes.com/business/la-fi-lazarus-20120124,1,261989.column?track=rss&utm_source=dlvr.it&...

 

The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account.

 

And there's a good reason for that. In 2002, the IRS issued a policy brief noting that because there are "numerous technical and administrative issues" relating to miles, such as how they're valued and used, the agency "has not pursued a tax enforcement program with respect to promotional benefits such as frequent-flier miles."

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

In other words, the tax man won't come after you for undeclared miles.

 

Smiley Wink


This article also states:

 

"The Internal Revenue Code recognizes rewards as taxable income," she said. "This recognition by the Internal Revenue Code is disclosed to customers prior to their election to participate in the promotion."

 

"An IRS spokeswoman told me only that the 2002 policy brief "still stands." She declined to comment on how this squares with the prizes-and-awards provision of Form 1099, or what taxpayers should do in light of Citi's reporting their airline miles as income."

 

"This opens up the notion that all miles are taxable,"

 

"As I say, this potentially affects millions of people — virtually anyone with airline miles. It'd be nice to know where we all stand. "

 

Seems like this author needs to be CAPS LOCKED and Red Bolded to death aswell...

 

I don't know about y'all but I'm getting scared again Smiley Surprised


 

It doesn't matter what the interviewer or the interviewee says or thinks which is basically all you quoted above.  The bottom line is what the IRS says they will or will not pursue:

 

"Consistent with prior practice," it said, "the IRS will not assert that any taxpayer has understated his federal tax liability by reason of the receipt or personal use of frequent-flier miles or other in-kind promotional benefits attributable to the taxpayer's business or official travel."

 

Also, the controversy is not really over the 1099's, but how Citibank is mis-classifying these miles to the IRS and on top of that grossly overinflating the value.  These are bonuses and not awards or rewards.  Nobody entered a contest or were given a prize.  These miles were given as a gift by the bank for opening up a checking/savings account with them.

 

You forget why I opened up this can of worms.

 

OP wanted to know about the AAdvantage credit card, and you were quick to scare him away by saying that he will receive a 1099.

 

Citibank is only issueing 1099's for the below statement which you obviously missed above.

 

"The bank is sending tax forms to customers who received thousands of airline miles as a reward for opening a checking or savings account."

 

I had the Citi AAdvantage Mastercard  2 years ago and received a 50,000 miles bonus for it.  I also currently have the Citi AAdvantage Visa Signature which I applied for last year and received a 75,000 miles bonus for.  I have yet to receive any 1099's.

 

I have also opened up a Citi Checking Account back in 2009 with a 40,000 miles bonus, I did receive a 1099 and did not claim with an attached explanation to the IRS that the valuation of the miles were misrepresented.  I have yet to get audited.

 

Experience speaks louder than any words, especially coming from someone who just reads articles and passes on mis-information.

 

To the OP, apply for all the Citibank credit card signup bonuses that you want.  You will not receive a 1099.

American Express Blue Cash Everyday $6600
Barclays US Airways Premier World Mastercard $14500
Chase Sapphire Preferred $5000
Chase Freedom Visa $1000
Chase United Explorer $8500
Citi AAdvantage Platinum Select Visa Signature $7500
Citi ThankYou Premier World Mastercard $7500
Message 18 of 25
AndySoCal
Valued Contributor

Re: Citi CC softing me

The link to the article below would seem to contradict  the 1099 statement.

 

http://boardingarea.com/blogs/unroadwarrior/2012/03/14/totally-flawed-newsweek-article-advices-avoid...

FICO 8 EX 794 TU 794 EF 805
Discover IT Opened 9/1990 CL 19,000, JC Penney Opened 10/2008 CL 4700, US Bank Cash Plus Opened 8/2010 CL 12000, Citibank Double Cash Opened 5/2015 CL 11,100, Chase Freedom Flex Opened 09/2020 CL 10,500
Message 19 of 25
aftermath
Established Contributor

Re: Citi CC softing me


@AndySoCal wrote:

The link to the article below would seem to contradict  the 1099 statement.

 

http://boardingarea.com/blogs/unroadwarrior/2012/03/14/totally-flawed-newsweek-article-advices-avoid...


You hear that teenastie? Smiley Wink

American Express Blue Cash Everyday $6600
Barclays US Airways Premier World Mastercard $14500
Chase Sapphire Preferred $5000
Chase Freedom Visa $1000
Chase United Explorer $8500
Citi AAdvantage Platinum Select Visa Signature $7500
Citi ThankYou Premier World Mastercard $7500
Message 20 of 25
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