A New Era For Citi Thank You Points

[Thingywingy]

i got the email from citi that they are now transferrable

The world truly is your playground. That's because you can now exchange your ThankYou® Points for Hilton HHonors™ Bonus Points and stay at the more than 3,900 hotels and resorts within the Hilton HHonors portfolio. For every 1,000 ThankYou Points you exchange, you'll receive 1,500 HHonors Bonus Points.

"They" meaning Hilton points?

[ganizzy]

"They" meaning Hilton points?

yes, the posts before had a link about it

[HelpMe]

REPOST

Just for you HelpMe 

TY but it does not feel the same! 

[yossi4k]

My wife got an offer for 40k thank you points in the mail for opening a citigold account ....1. Are these points taxable? 2. She currently has the thank you citi cc with 54k ty points. If I open this bank account for her and cancel her cc will she retain her points or no... TIA

[Lou Bob]

My wife got an offer for 40k thank you points in the mail for opening a citigold account ....1. Are these points taxable? 2. She currently has the thank you citi cc with 54k ty points. If I open this bank account for her and cancel her cc will she retain her points or no... TIA

got it too. Would ap work for dd?

[Nitantnel]

My wife got an offer for 40k thank you points in the mail for opening a citigold account ....1. Are these points taxable? 2. She currently has the thank you citi cc with 54k ty points. If I open this bank account for her and cancel her cc will she retain her points or no... TIA

1. Yes, they are definitely taxable. 2. Yes, but the premier CC gives you better redemption options. You can also transfer it to anyone else with a TY account and it will last there for 90 days.

got it too. Would ap work for dd?

I believe it would.

[joeb1]

u should just know i never got a 1099 for aa miles from last year or 2 yrs ago

[yossi4k]

u should just know i never got a 1099 for aa miles from last year or 2 yrs ago

I got a 1099 from Chase for the $200 -checking account bonus...as far as ap all I know is that Chase recognizes if as dd

[yanks23321]

u should just know i never got a 1099 for aa miles from last year or 2 yrs ago

Nitantnel is correct that they are taxable but the IRS is not strict about it. They haven't made a decision how to mandate it, but don't worry when they do, it will work prospectively, so no one that hasn't reported their miles or points will be in trouble.

Now if your bank gives you a 1099 it gets more complicated because now it is reported to the IRS. There is a lot on this, but in short they will usually give you a 1099 only if it's a cash back reward, like in the OP's case. (If you get a 1099 you should be reporting it)

There was a case where a business owner collected a lot of points from his business card and bought an expensive car with it (you can only imagine how many points he accumulated). He had to pay taxes on it and I think the bank gave him a 1099 on the car.

[Nitantnel]

Nitantnel is correct that they are taxable but the IRS is not strict about it. They haven't made a decision how to mandate it, but don't worry when they do, it will work prospectively, so no one that hasn't reported their miles or points will be in trouble.

Now if your bank gives you a 1099 it gets more complicated because now it is reported to the IRS. There is a lot on this, but in short they will usually give you a 1099 only if it's a cash back reward, like in the OP's case. (If you get a 1099 you should be reporting it)

There was a case where a business owner collected a lot of points from his business card and bought an expensive car with it (you can only imagine how many points he accumulated). He had to pay taxes on it and I think the bank gave him a 1099 on the car.

Are you an accountant?

[yanks23321]

Are you an accountant?

Lol how'd you know.

Yes but not a pro, I am fairly new to the game. It just happens to be, we were discussing it, the other day in the office, and we looked it up. Then I saw the post today so I figured I would give my two cents.

[HelpMe]

Are you an accountant?

I sure hope not.

[HelpMe]

Lol how'd you know.

Yes but not a pro, I am fairly new to the game. It just happens to be, we were discussing it, the other day in the office, and we looked it up. Then I saw the post today so I figured I would give my two cents.

Maybe you are short a couple of cents.    They give 1099's for TYP also not just cash.

[yanks23321]

I sure hope not.

Maybe you are short a couple of cents.    They give 1099's for TYP also not just cash.

Not sure what you mean by ur first comment, but I don't recall saying anywhere that they "don't" give you 1099's for points.

Here is what I said "they will usually give you a 1099 only if it's a cash back reward" I didn't say that they don't give 1099's on points as you see the case with Citibank, where they do give 1099-MISC. Mind you they are pratically the only ones.

Also you can look it up, citibank is really the only one who gives 1099-Misc and there were a few senators calling it unconstitutional.

Here are two articles you can read about the matter.

http://www.foxbusiness.com/personal-finance/2012/01/31/reward-point-gifts-are-taxable-says-irs/

http://thepointsguy.com/2012/02/tpg-on-fox-business-the-willis-report/

[HelpMe]

Not sure what you mean by ur first comment, but I don't recall saying anywhere that they "don't" give you 1099's for points.

Here is what I said "they will usually give you a 1099 only if it's a cash back reward" I didn't say that they don't give 1099's on points as you see the case with Citibank, where they do give 1099-MISC. Mind you they are pratically the only ones.

Maybe I read your comment wrong. Just to make clear we are on the same page the 1099 is not based if it is miles/cash/points but the type of account it is being paid on.

[yanks23321]

Maybe I read your comment wrong. Just to make clear we are on the same page the 1099 is not based if it is miles/cash/points but the type of account it is being paid on.

I am not sure if this is your way of apologizing, but I'll except it as one.

Sorry it's hard to read what your asking, but from what I understand your trying to ask, here is the answer. 1099-misc consists of a bunch of things, one of them being any prizes and rewards in excess of $600.

Now in regards to miles and points and the fact that citibank, (being the only ones doing it), are giving 1099-misc is because how do you really put an exact dollar value on each point especially when you see there are so many different and ever changing amounts.

[HelpMe]

I am not sure if this is your way of apologizing, but I'll except it as one.

Sorry it's hard to read what your asking, but from what I understand your trying to ask, here is the answer. 1099-misc consists of a bunch of things, one of them being any prizes and rewards in excess of $600.

Now in regards to miles and points and the fact that citibank, (being the only ones doing it), are giving 1099-misc is because how do you really put an exact dollar value on each point especially when you see there are so many different and ever changing amounts.

If you are looking for an apology then sure take it as one. 

The point I am making is the bonus you get for CC is not taxable and the bonus for savings/checking accounts is. It does not matter if that bonus is miles/points/cask. At least this is how the IRS has looked at it so far.

[PETERP]

If you are looking for an apology then sure take it as one. 

The point I am making is the bonus you get for CC is not taxable and the bonus for savings/checking accounts is. It does not matter if that bonus is miles/points/cask. At least this is how the IRS has looked at it so far.

+1  From  what I have read:  the bonus from CC is always dependent on a spend . Therefore the points / miles are  considered a rebate and not income.

Even if first spend is $1 and value of bonus is higher, it is moot . 

[meshugener]

And what do I have to do if the bank didn't send me a 1099 for a checking miles or cash signup bonus?

[PETERP]

Thank God and do nothing . Citi has not sent them to every one, so you are one of the lucky ones.
Remember not all 1099s have been sent yet