Author Topic: 40,000 Citi Points for Opening a checking account (Read 49016 times)

joeb1 · « **Reply #20 on:** December 05, 2011, 10:58:31 PM »

i dont know if we should make something of this however it says in the t&c
"Value of rewards from redeemed Points will be reported to the IRS as miscellaneous income on Form 1099-MISC"

good sam · « **Reply #21 on:** December 05, 2011, 11:04:19 PM »

Still, I'm sure there many DDFers who are still not paying any taxes. Without that this is a great deal.

Nitantnel · « **Reply #22 on:** December 05, 2011, 11:05:47 PM »

Quote from: AJK on December 05, 2011, 10:55:31 PM

Above my paygrade. I'm just telling you the reality.

1099s are rarely, if ever, issued for CC bonuses.

The IRS is constantly nibbling away at our game. First it was the taxes on miles, now for a bonus/present!!? It won't take long before this becomes the norm.

joeb1 · « **Reply #23 on:** December 05, 2011, 11:08:55 PM »

can someone tell me how to satisfy the direct deposit requirement? thankx

AJK · « **Reply #24 on:** December 05, 2011, 11:10:00 PM »

Quote from: Nitantnel on December 05, 2011, 11:05:47 PM

The IRS is constantly nibbling away at our game. First it was the taxes on miles, now for a bonus/present!!? It won't take long before this becomes the norm.

I got news for you papi, the IRS can absolutely tax CC signups as well.

Quote

Gross income means all income from whatever source derived, unless excluded by law. Gross income includes income realized in any form, whether in money, property, or services.

Source: 26 CFR 1.61-1

AJK · « **Reply #25 on:** December 05, 2011, 11:11:40 PM »

Quote from: joeb1 on December 05, 2011, 10:55:00 PM

i know this has been discussed extensively however can someone please tell me how i can do a direct deposit artificially and still be qualified?

Quote from: joeb1 on December 05, 2011, 11:08:55 PM

can someone tell me how to satisfy the direct deposit requirement? thankx

There is no need to double-post. It's annoying.

If someone knows the answer and wishes to answer, s/he will.

joeb1 · « **Reply #26 on:** December 05, 2011, 11:14:54 PM »

i thought it was skipped over as they started talking about a different topic

Nitantnel · « **Reply #27 on:** December 05, 2011, 11:15:25 PM »

I bet that in about a hundred years or so, when they'll finally get a little bit modern, they will have you on any and every transaction. Such as reported income on the CC applications. Etc. etc. etc.

AJK · « **Reply #28 on:** December 05, 2011, 11:18:19 PM »

Quote from: Nitantnel on December 05, 2011, 11:15:25 PM

I bet that in about a hundred years or so, when they'll finally get a little bit modern, they will have you on any and every transaction. Such as reported income on the CC applications. Etc. etc. etc.

I can't profess to know what you're talking about.

good sam · « **Reply #29 on:** December 05, 2011, 11:31:47 PM »

Quote from: AJK on December 05, 2011, 11:18:19 PM

I can't profess to know what you're talking about.

I think he means after Google takes over the world.

TC610 · « **Reply #30 on:** December 05, 2011, 11:46:53 PM »

Quote from: Nitantnel on December 05, 2011, 11:05:47 PM

The IRS is constantly nibbling away at our game. First it was the taxes on miles, now for a bonus/present!!? It won't take long before this becomes the norm.

IMHO this is the norm and has been for a while. I can't recall a bonus for opening a checking account at a major bank in at least the last 2 years that didn't have a 1099 implication, whether that bonus is $$ or merchandise of significant value (iPods, etc).

AJK · « **Reply #31 on:** December 06, 2011, 12:04:28 AM »

Quote from: TC610 on December 05, 2011, 11:46:53 PM

IMHO this is the norm and has been for a while. I can't recall a bonus for opening a checking account at a major bank in at least the last 2 years that didn't have a 1099 implication, whether that bonus is $$ or merchandise of significant value (iPods, etc).

Speaking of which...

@AsherO - did you get a 1099 for (if I recall correctly) getting an iPod from opening that bank account?

EDIT: It seems that there was a 1099.

Dan · « **Reply #32 on:** December 06, 2011, 12:49:49 AM »

It's very simple.
A bonus on a credit card is a purchase rebate, hence the need to use the card before getting a bonus. Same goes for miles or cash earned on a credit card, they are just a purchase rebate, thus are not taxable.

A bonus for opening a checking account is the same as interest income as far as the IRS is concerned, and is therefore taxable.

Nitantnel · « **Reply #33 on:** December 06, 2011, 08:15:24 AM »

interesting.

AJK · « **Reply #34 on:** December 06, 2011, 09:24:03 AM »

Are there any cards that give a sign-up bonus before spending anything? (I can't think of any off the top of my head.)

If so, how is that a "purchase rebate?"

bubbles · « **Reply #35 on:** December 06, 2011, 09:27:08 AM »

Quote from: AJK on December 06, 2011, 09:24:03 AM

Are there any cards that give a sign-up bonus before spending anything? (I can't think of any off the top of my head.)

If so, how is that a "purchase rebate?"

Until you think of a card like that you probably should hold off on the question

AJK · « **Reply #36 on:** December 06, 2011, 10:02:22 AM »

Quote from: bubbles on December 06, 2011, 09:27:08 AM

Until you think of a card like that you probably should hold off on the question

Why would I do that?

good sam · « **Reply #37 on:** December 06, 2011, 10:11:59 AM »

Can anyone confirm from experience that they actually DO issue a 1099 and its not just something they have to write in the t&c?

AJK · « **Reply #38 on:** December 06, 2011, 10:30:23 AM »

Quote from: good sam on December 06, 2011, 10:11:59 AM

Can anyone confirm from experience that they actually DO issue a 1099 and its not just something they have to write in the t&c?

I have read reports (on FT) that this is indeed the case.

But, no, can't confirm from personal experience.

Dan · « **Reply #39 on:** December 06, 2011, 12:09:38 PM »

Quote from: AJK on December 06, 2011, 10:02:22 AM

Why would I do that?

Why should you hold off on a question about a theoretical that doesn't exist as far we know? Seriously?
Maybe you should start a master thread for theoretical questions about situations that don't exist?