1099 from Chase

[Dover]

Chase is tightening up on sending out 1099's for referrals or anything else they can- Seeing a lot about this on Reddit and FlyerTalk.

I've done quite a few referrals in 2023 and received a bunch of 1099's.
However, I did not redeem a single point and so it leaves me wondering how they can 1099 me for merely giving me the ability to redeem those Ultimate Rewards.
Also, their own T&C say "Points have no value until redeemed."
Any advice?

[yawn]

Yeah I wasn't too happy to find my 1099s in the mail today.
But to answer your question, points would fall under the definition of constructive receipt.

[smaxber]

Yup just got also.
@Dan  any links/previous write ups regarding this? Never had this before. it’s unclear If it’s only for referrals or even from one or two bonuses I got from spend still trying to figure it out. Their UR website does not allow you to see ultimate reward activity past the month or two any tricks?

[smaxber]

Also how does it work in regards to points that are not redeemed now, but rather at a later date, when the devaluations can occur.

[yawn]

Also how does it work in regards to points that are not redeemed now, but rather at a later date, when the devaluations can occur.

Constructive receipt is an accounting term that requires an individual or business to pay taxes on income despite the fact that the money has not yet been received in actuality. What matters instead is that the recipient of the income is able to control or utilize that money even when it is not in hand, for instance being able to spend funds deposited from a check before it has cleared.

[baron]

I’d say constructive receipt is a bad argument given it can be confiscated. what happens when someone is shutdown out of NY? (At least after their grace period which we’ve heard of).

[imayid2]

Got a 1099 from Amex for the first time. Did some referrals but I think it’s also my cash back that they’re including.

[yawn]

I’d say constructive receipt is a bad argument given it can be confiscated. what happens when someone is shutdown out of NY? (At least after their grace period which we’ve heard of).

I'm not an accountant, and don't take anything I say as fact. But I would think that the fact that you can cash it out today would be enough to qualify as constructive receipt. A check is unusable past it's expiration date, yet still falls under constructive receipt.

[baron]

I'm not an accountant, and don't take anything I say as fact. But I would think that the fact that you can cash it out today would be enough to qualify as constructive receipt. A check is unusable past it's expiration date, yet still falls under constructive receipt.

Wasn’t arguing with you in Din, rather in Lomdus. Anyway, earlier you quoted a deposited check, more understandable. No you seem to say uncashed check. That’s a bigger chiddush. Can you you be taxed for an uncashed check if when it expires I mustn’t give you a new one? (As apposed to mailed out payroll). If yes that’s a better comparison IMO and a big chiddush. I’m no accountant either.

[Dan]

Yup just got also.
@Dan  any links/previous write ups regarding this? Never had this before. it’s unclear If it’s only for referrals or even from one or two bonuses I got from spend still trying to figure it out. Their UR website does not allow you to see ultimate reward activity past the month or two any tricks?

It's for referrals.

[yawn]

Wasn’t arguing with you in Din, rather in Lomdus. Anyway, earlier you quoted a deposited check, more understandable. No you seem to say uncashed check. That’s a bigger chiddush. Can you you be taxed for an uncashed check if when it expires I mustn’t give you a new one? (As apposed to mailed out payroll). If yes that’s a better comparison IMO and a big chiddush. I’m no accountant either.

An uncashed check issued in 2023 is taxable in 23 even though you may let it expire in 24.

[baron]

An uncashed check issued in 2023 is taxable in 23 even though you may let it expire in 24.

All check types, even with no requirement of replacement? I can always choose not to accept the check,Interesting. Again not talking a payroll or reimbursement check. Let’s say for example I’d be able to confiscate that check at any time so long as it wasn’t deposited/cleared with no recourse. If yes that’s really interesting and frankly wrong IMO. Similarly they Can take away the points still... Again, not arguing in Din, rather how it should be in Lomdus (meaning how it should be, even given the reasoning of constructive receipt.)

[yawn]

All check types, even with no requirement of replacement? I can always choose not to accept the check,Interesting. Again not talking a payroll or reimbursement check. Let’s say for example I’d be able to confiscate that check at any time so long as it wasn’t deposited/cleared with no recourse. If yes that’s really interesting and frankly wrong IMO. Similarly they Can take away the points still... Again, not arguing in Din, rather how it should be in Lomdus (meaning how it should be, even given the reasoning of constructive receipt.)

The lomdus comes down to whether constructive receipt applies to monies you can choose to cash in on at the moment, or monies that you have full control of their future. My entire knowledge of constructive receipt is from google, and google is rather ambiguous about that issue. So i'll leave it at that. I definitely hear what you're saying, and I hope SCOTUS sides with you one day.

[imayid2]

If someone transfers UR points to their spouse, will they double taxed?

[LoLo]

No

[ExGingi]

Got a 1099 from Amex for the first time. Did some referrals but I think it’s also my cash back that they’re including.

AMEX send 1099 for cash back? I thought it's only for referral bonuses.

@Dan has there been any change in policy? Are points and cashback now subject to a 1099?

[shapsam]

Amex sent for the checking account points sign up bonus

[imayid2]

AMEX send 1099 for cash back? I thought it's only for referral bonuses.

@Dan has there been any change in policy? Are points and cashback now subject to a 1099?

Honestly can’t say for sure

[LoLo]

Amex sent for the checking account points sign up bonus

As does every bank.

[shapsam]

As does every bank.

Have never gotten with Wells Fargo bonuses.