FBI Raids Orthodox Homes

[Shotguns]

Miles are not taxable income if they are redeemed for flights. However, if they are sold then it is considered taxable income.

[ChaimMoskowitz]

forget selling miles, is milage earned taxable? Who decides the value?

Mileage earned and you used for personal use is not an issue.

[ExGingi]

If you get 2% cash back you don't owe tax on a purchase rebate.
If you sell the miles you earned on a card instead of earning cash back, how is that not still a purchase rebate?

Capital gain?

[yelped]

Miles are not taxable income if they are redeemed for flights. However, if they are sold then it is considered taxable income.

Why? What if you redeem them for Visa gift cards? Is that taxable? What's the difference if it's flights or VGCs?

[David Smith]

forget selling miles, is milage earned taxable?

Miles earned from credit cards and flights are generally considered to be non taxable (although logically, RT should make things interesting).

Who decides the value?

There is generally a "Fair Retail Value" assigned, that is used for 1099 purposes in sweepstakes and bank bonuses, for example.

[Dan]

Capital gain?

You buy something for $100.
A 2% CB card gives you $2 cash back, non-taxable purchase rebate.
A 2mpd card gives you 2 miles as a purchase rebate. You sell to a broker for $3. Why is that $3 not a purchase rebate from your $100 purchase, just like the cash back is? I'd argue it is.

[churnbabychurn]

Miles are not taxable income if they are redeemed for flights. However, if they are sold then it is considered taxable income.

+.05

[Malachi]

The Way I understand it is even if Miles aren't Taxable It still is considered income for the programs. I'm not sure about Medicaid but for sure for Food Stamps

[ChaimMoskowitz]

If you get 2% cash back you don't owe tax on a purchase rebate.
If you sell the miles you earned on a card instead of earning cash back, how is that not still a purchase rebate?

What if I sold that 2% cash for 2.8%? Yes that is possible and don't ask.

[yelped]

You buy something for $100.
A 2% CB card gives you $2 cash back, non-taxable purchase rebate.
A 2mpd card gives you 2 miles as a purchase rebate. You sell to a broker for $3. Why is that $3 not a purchase rebate from your $100 purchase, just like the cash back is? I'd argue it is.

I think you mean Isn't.

[David Smith]

Why? What if you redeem them for Visa gift cards? Is that taxable? What's the difference if it's flights or VGCs?

Fly 10 times, get one flight free (which is what miles are to a degree) is another form of rebate.

If the miles earned are from business travel that was expensed, and redeemed for business travel, that generally would be taxable.

[ChaimMoskowitz]

The Way I understand it is even if Miles aren't Taxable It still is considered income for the programs. I'm not sure about Medicaid but for sure for Food Stamps

Never thought of that. Ouch!

[Dan]

If the miles earned are from business travel that was expensed, and redeemed for business travel, that generally would be taxable.

-1

[chevron]

How many miles are we talking about already ? 200k in MS ? 500k in MS ?

[Dan]

The Way I understand it is even if Miles aren't Taxable It still is considered income for the programs. I'm not sure about Medicaid but for sure for Food Stamps

So cash back from a credit card is income now for EBT?
Source?

[David Smith]

How many miles are we talking about already ? 200k in MS ? 500k in MS ?

Likely well beyond 200k to 500k miles...

[ChaimMoskowitz]

If the miles earned are from business travel that was expensed, and redeemed for business travel, that generally would be taxable.

There is guidance from the IRS for businesses but AFAIK nothing on personal use.

[Shotguns]

https://www.irs.gov/pub/irs-drop/a-02-18.pdf

[Malachi]

So cash back from a credit card is income now for EBT?
Source?

from my Lawyer. That is his interpretation of the law. I'm sure you can find others who might disagree..

[Dan]

from my Lawyer. That is his interpretation of the law. I'm sure you can find others who might disagree..

Find a new lawyer?