As of last year Chase started sending out 1099s for points earned in certain ways, including through their "refer a friend" program. This is happening again in 2020, so in this post I wanted to take a look at what you can expect to receive 1099s for, since these seem to be in the process…
Continue reading: Chase Sending Out 1099s For Referral Bonuses (And More)
Share your questions, experiences, and thoughts below.
Good, now lets get onto the business of taxing points earned while flying/staying at hotels for work purposes.
I opened Sapphire Checking and received 60000 UR pts. That was put on the 1099 I received.
I would argue these referral points are "gifts" of thanks for sending business their way. Gifts are not taxable under a certain threshold. But hey, I'm not a tax expert so what do I know. LOL
I am a tax professional and just a note that the $600 is the IRS threshold. BTW, even if you fail to receive a 1099 or it's less than the reporting threshold...it is still taxable income that you are supposed to report. Both the sender and the recipient can be assessed penalties and interest for failure to report. @Nilda, gift tax rules are between individuals.
Referrals are obviously taxable income. They always have been, but most people only bother reporting income declared on a 1099. Similarly, points for bank accounts are another form of interest, and so would be taxable. I'd be interested in the exact characteristics of the retention bonuses and annual fee waivers you mentioned. Normally these either take the shape of points for further spending (i.e., rebates) or a credit against the annual fee (again, a rebate). What am I missing?
Got a 1099-MISC for Chase for referrals, AF credits as well as some minor $10-25 credits. Just out of curiosity, some of the referrals credits are from members of the local group who we get together with from time to time. Can I deduct expenses related to these meetups?
Received a 1099 for $400 value of 40,000 points for a card referral. However card was closed before the points were posted. 40,000 points were posted AFTER the last statement in which the annual fee was refunded AND it was noted 40,000 points not eligible for transfer to Bonvoy rewards account. Do I need to report the $400 value to IRS for points (services) NOT received? Your comments are solicited.
Just received a 1099-MISC from Chase for 2022. However, I only earned rewards points in 2022, I don't have any transactions which fall into the taxable category such as referrals, etc. I believe this is a mistake on Chase's part and will be following up with them.
WOW. I have 3 1099's for 2022 totally over $2000.
Do they send out a 1099 if you use points like cash to purchase a hotel stay or trip?
also, someone at chase seemed to try to tell me that I got a 1099 because I moved points from one card to another.