chance to win a million aa miles

[yeshivaman]

http://fly.aa.com/promo/default.aspx?cc=14

[AsherO]

http://fly.aa.com/promo/default.aspx?cc=14

Might not be as exciting considering that (according to the T&C) they'll send you a 1099 for $25k in income.

[Yaalili]

I don't understand it, do u have to pay the 1099? - If u do, why would anyone want to win the miles?

[Cholentfresser]

I don't understand it, do u have to pay the 1099? - If u do, why would anyone want to win the miles?

a. that's why it's in the fine print.
b. people who don't file taxes (either bc they don't work, or get paid off the books).

[AsherO]

I don't understand it, do u have to pay the 1099? - If u do, why would anyone want to win the miles?

A 1099 is a standard  IRS form for income other than wages/salary/tips. If you get a 1099 for $25k and you're (hypothetically) in a 30% tax bracket (including federal and state taxes) you'd owe $7,500 in taxes, which comes out to .75 cents per miles, still worth it.

a. that's why it's in the fine print.
b. people who don't file taxes (either bc they don't work, or get paid off the books).

A. The have to write it, they might not send it.
B. Even if you don't file taxes you'd legally have to pay it. (maybe there's discussion about miles not being taxable, but you definitely have to pay taxes if you won $25,000 cash and got a 1099, even if you don't work at all)

[Yaalili]

So if u don't work, then u don't have to pay the 1099?

[AsherO]

So if u don't work, then u don't have to pay the 1099?

You still have to pay it. Many people work (e.g. as consultants) and only get 1099s, they still have to pay taxes on that income.

[Cholentfresser]

you definitely have to pay taxes if you won $25,000 cash and got a 1099, even if you don't work at all)

You're right about that, but i think there's a cut off amount, that if you are 1099'd under that amount, and you don't make a certain amount of money annually, you don't need to pay it. even if you file for taxes. i don't know what those numbers need to be, though.

[AsherO]

You're right about that, but i think there's a cut off amount, that if you are 1099'd under that amount, and you don't make a certain amount of money annually, you don't need to pay it. even if you file for taxes. i don't know what those numbers need to be, though.

You're right, it's something like $8,500, but you'd still owe taxes on $25,000. Even if the amount was below the threshold for taxable income, you'd still have to file a tax return (though no taxes would be due). I'm also not sure if that amount (below the federal threshold) is/isn't taxable when it comes to state taxes.

[Cholentfresser]

You're right, but since it's something like $8,500 hundred you'd still owe taxes on $25,000. Even if the amount was below the threshold for taxable income, you'd still have to file a tax return (though no taxes would be due). I'm also not sure if that amount (below the federal threshold) is/isn't taxable when it comes to state taxes.

[AsherO]

Edited it like 100 times, trying to get the wording right.

[Dan]

You're right about that, but i think there's a cut off amount, that if you are 1099'd under that amount, and you don't make a certain amount of money annually, you don't need to pay it. even if you file for taxes. i don't know what those numbers need to be, though.

At $25,000 you would need to file and pay taxes just for the 1099.

A 1099 is a standard  IRS form for income other than wages/salary/tips. If you get a 1099 for $25k and you're (hypothetically) in a 30% tax bracket (including federal and state taxes) you'd owe $7,500 in taxes, which comes out to .75 cents per miles, still worth it.

Most people in NY pay over 10% just in state and city income tax, not even counting fed taxes.

[AsherO]

At $25,000 you would need to file and pay taxes just for the 1099.
Most people in NY pay over 10% just in state and city income tax, not even counting fed taxes.

Like I said, hypothetically. But even at 45% it wouldn't be a bad deal at 1.125 cents per mile.

[MLM]

Its pretty scary that they value miles at 2.5 cents imagine if start getting 1099 on all the miles we earn. The whole thing might not be worth it. Like if I get 1099d on my 40,000 citi checking promo that comes out to be $1000 of income which is not

[Dan]

Its pretty scary that they value miles at 2.5 cents imagine if start getting 1099 on all the miles we earn. The whole thing might not be worth it. Like if I get 1099d on my 40,000 citi checking promo that comes out to be $1000 of income which is not

Citi checking will send you a 1099 for $1,100 of income as they value at 2.75cpm.

[Jimbob]

Citi checking will send you a 1099 for $1,100 of income as they value at 2.75cpm.

YUCK!!!!!!!!!