Citibank 1099

[nobiggy]

A Citi rep told me now on the phone that redeeming double cash rewards triggers a 1099.. just another DROPR? Anybody with experience?

I also got this 1099 and this is my first year redeeming double cash rewards. This sucks.

[12HRS]

I also got this 1099 and this is my first year redeeming double cash rewards. This sucks.

they tried this once before and iinm they had to back down. Is the 1099 on the full 2% or only the bonus % upon paying your bill

eta: you are showing a 1099 already from 2016?

[nobiggy]

they tried this once before and iinm they had to back down. Is the 1099 on the full 2% or only the bonus % upon paying your bill

eta: you are showing a 1099 already from 2016?

Actually it says 2014.

[12HRS]

Actually it says 2014.

a banking bonus?

[nobiggy]

a banking bonus?

I guess it is. I filled it out and sent it to them. I'm wondering if I had to do that or I could've ignored it.

[Jkhein]

Actually it says 2014.

Where do you see this?

[nobiggy]

Where do you see this?

It says on the top left: W-9 (rev. December 2014)
If they bill me for the 50k AA at 2.0 oh boy will i be pissed.

[Ephraimh]

I guess it is. I filled it out and sent it to them. I'm wondering if I had to do that or I could've ignored it.

Wait, lemme get this straight, so you never got anything for the Double cash redemption, Right?

[A3]

It says on the top left: W-9 (rev. December 2014)
If they bill me for the 50k AA at 2.0 oh boy will i be pissed.

Rev. December 2014 does not necessarily mean the 1099 will be for 2014.

That is just the verison of the w9 they sent you. It was revised December 2014.

[chbochur]

From my understanding of taxes, you can only be taxed on money earned received as a present... However if let's say you made $100,000 during the year and paid tax and are now left with (for example) $60,000 and spent $1,000 and the store owner decided to give you back some of that money (let's say $100) you don't have to pay tax on that$100 cause you already paid it together with your original $100,000 so in other words cash back isn't taxable, however a signup bonus is a present to you and was never taxed to begin with therefore they tax you for it, if anyone has data points against this please let me know, thanks

[tzifanya54]

From my understanding of taxes, you can only be taxed on money earned received as a present... However if let's say you made $100,000 during the year and paid tax and are now left with (for example) $60,000 and spent $1,000 and the store owner decided to give you back some of that money (let's say $100) you don't have to pay tax on that$100 cause you already paid it together with your original $100,000 so in other words cash back isn't taxable, however a signup bonus is a present to you and was never taxed to begin with therefore they tax you for it, if anyone has data points against this please let me know, thanks

Since signup bonus for the most part require min spend, I believe it's viewed as a rebate on that money spent. Either way in reality, I have never. Even taxed for a signup bonus, from Citi or any bank for that matter.

[chbochur]

Since signup bonus for the most part require min spend, I believe it's viewed as a rebate on that money spent. Either way in reality, I have never. Even taxed for a signup bonus, from Citi or any bank for that matter.

Fare point, didn't think of that, maybe that's why I believe discover gives a 1099 cause there's no minimum spend for the $50 sign up bonus... (Could be I'm wrong and even they don't give but for some reason I recall getting a 1099 from them...)

[A3]

The issue a few years ago, was for bank account bonus, not CC bonus

[A3]

Either way, if you did any MS to cause the 1099 don't forget to deduct the cost of the gift cards and mileage to drive around etc.

[noturbizniss]

Double cash is considered a rebate.  Not taxable. Signup bonus is def not a rebate so technically is taxable.

[David Smith]

Signup bonus is def not a rebate so technically is taxable.

Source?

[nobiggy]

Double cash is considered a rebate.  Not taxable. Signup bonus is def not a rebate so technically is taxable.

How can they put a dollar amount on it? What if they expire or what if I fly first class? Makes no sense.

[JTZ]

How can they put a dollar amount on it? What if they expire or what if I fly first class? Makes no sense.

They will put a fixed value on them then it is up you to prove their worth.

[noturbizniss]

Source?

Giyf
https://www.google.com/search?q=cc+reward+tax&oq=cc+reward+tax&aqs=chrome..69i57.11988j0j4&client=ms-android-verizon&sourceid=chrome-mobile&ie=UTF-8

[David Smith]

Giyf
https://www.google.com/search?q=cc+reward+tax&oq=cc+reward+tax&aqs=chrome..69i57.11988j0j4&client=ms-android-verizon&sourceid=chrome-mobile&ie=UTF-8

Types of common credit card rewards that are not counted as income include cash-back programs, travel miles bonuses, accumulated points towards future purchases and credit card sign-up bonuses that require a financial transaction to be realized.

If, however, the sign-up bonus for your credit card does not require that you make any purchases or charge any amount to your card, then you are likely to receive a 1099-MISC tax form in the mail in conjunction with the bonus. Since the IRS requires that these benefits be treated as income, you must document your rewards on the 1099 form. In some circumstances, the issuing credit card company reports the rewards as income to the IRS and state authorities, but this is usually only the case when state law requires such reports.



Read more: Are credit card rewards considered taxable income by the IRS? | Investopedia http://www.investopedia.com/ask/answers/110614/are-credit-card-rewards-considered-taxable-income-irs.asp#ixzz4UZLGD6rv
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A signup bonus that requires you to spend $3k for 100kb points valued at $1500 is just a generous rebate.