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1099-MISC for referring friends/family to get a new credit card?

TWG2012 1,095 443 February 15, 2017 at 12:12 PM in Finance (2)
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Hey everyone,

This is the first time I've received a 1099-MISC from a Bank before, in this case, Chase.

I referred the max amount of people to the Chase Southwest card and got 50,000 southwest points for doing so.

I also referred 4 people to the Chase Freedom card and get $200 in "rewards" for doing so.

The 1099-MISC came in the mail a couple days ago and I was confused as to why it was sent to me...I was under the impression that points/rewards are non-taxable/do not have a monetary value?

Just curious if anyone has prior experience with this before/ has any advice on why I was sent a 1099-MISC besides that fact that I was over the $600 threshold for "income requirements" when in my eyes it doesn't seem to be income.

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#2
from what i know any bonus add on will be under 1099 misc.
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#3
Quote from jay85 View Post :
from what i know any bonus add on will be under 1099 misc.
It's interesting how you can earn 50K points through a credit card sign-up bonus, but it won't be reported on a 1099 misc...or even a 100K sign-up bonus and no 1099 misc for it.

What makes this any different?
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Quote from TWG2012 View Post :
It's interesting how you can earn 50K points through a credit card sign-up bonus, but it won't be reported on a 1099 misc...or even a 100K sign-up bonus and no 1099 misc for it.

What makes this any different?
how much was the 1099 for $800?
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#5
Quote from stufine View Post :
how much was the 1099 for $800?
$700 in total. It's not a big deal as far as tax payments go. But still a bit unclear.
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Quote from TWG2012 View Post :
It's interesting how you can earn 50K points through a credit card sign-up bonus, but it won't be reported on a 1099 misc...or even a 100K sign-up bonus and no 1099 misc for it.

What makes this any different?
My understanding is that credit card signup bonuses can be considered a discount because there is typically a spending requirement and that spending would be subject to sales tax. Cash back rewards are not taxed for this reason.

Bank account or referral bonuses typically don't require any taxable spending.

From http://money.usnews.com/money/blo...-earn-them
Quote from Laurie Ziegler :
when there's not a requirement of a purchase, [rewards are] taxable
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Last edited by dhc014 February 15, 2017 at 01:49 PM.
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Quote from dhc014 View Post :
My understanding is that credit card signup bonuses can be considered a discount because there is typically a spending requirement and that spending would be subject to sales tax. Cash back rewards are not taxed for this reason.

Bank account bonuses typically don't require any taxable spending. They might require a direct deposit but that wouldn't be taxed.

From http://money.usnews.com/money/blo...-earn-them
Seems a bit vague...

I got 5,000 points per referral on my SW card x 10 = 50,000 points.

Can they assign a dollar amount to a "point" and not an actual cash award?
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Quote from TWG2012 View Post :
Seems a bit vague...

I got 5,000 points per referral on my SW card x 10 = 50,000 points.

Can they assign a dollar amount to a "point" and not an actual cash award?
Since no spending was required for the 50,000 point bonus, it is likely considered taxable.

They probably can assign a dollar value to the points, points travel blogs certainly do. Did they include it on the 1099 you received?
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Quote from dhc014 View Post :
Since no spending was required for the 50,000 point bonus, it is likely considered taxable.

They probably can assign a dollar value to the points, points travel blogs certainly do. Did they include it on the 1099 you received?
The 1099 included the credit card account numbers in full that were being linked to the "other income", along with the dollar amount that was taxable for each card.

No dollar amount is on the 1099 stating how they came to the amount or anything like that.
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#10
It depends on the bank. Most do for 600+.

More info: http://www.doctorofcredit.com/ban...l-bonuses/
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