b***n
发帖数: 13455 | 1 Frequent fliers jolted as Citibank says some miles are taxable
Some American Airlines frequent-fliers got a jolt this week after Citibank
sent tax forms that listed miles as taxable miscellaneous income.
The Associated Press reports the 1099 tax forms "were sent to customers who
were given American Airline miles for opening a checking or savings account
last year. That's causing confusion -- and possible concern -- among those
who never before reported their frequent flier miles and other credit card
rewards as income."
The Los Angeles Times writes the AA customers who received the 1099 tax
forms from Citibank now could be "on the hook for paying related taxes or
possibly facing a greater risk of being audited."
How did this issue surface in the first place?
The AP notes that - generally -- frequent-flier miles given as credit card
rewards have not been considered taxable "because they're treated as rebates
on spending, according to the Tax Institute at H&R Block."
However, the catch in this situation is that miles doled out as a "reward"
for opening a new checking or savings account may be viewed differently. The
AP says that's because "you don't spend any money to receive it," meaning
it's not really a rebate on spending.
"So the gift is instead treated similarly to interest income, meaning that
it's taxable," AP writes.
"When a customer receives a gift for opening a bank account -- whether cash,
a toaster or airline miles -- the value of that gift is generally treated
as income and subject to reporting," Citibank says in a statement to AP.
What's the take from the IRS?
Spokeswoman Michelle Eldridge on Monday acknowledged to The Hill publication
that the IRS declared in 2002 that it "will not assert that any taxpayer
has understated his federal tax liability by reason of the receipt or
personal use of frequent-flier miles."
However, Eldridge pointed out to the Hill that the account-opening bonuses
could be viewed differently.
"When frequent-flier miles are provided as a premium for opening a financial
account, it can be a taxable situation subject to reporting under current
law," Eldridge says to the Hill.
The apparent room for interpretation has left many scratching their heads on
the subject.
On that topic, the Times writes "it's worth noting how confusing the issue
is even for those with a deep knowledge of tax law. Financial experts weren'
t sure what to make of Citi's claim that frequent-flier miles are a prize or
award and thus represent taxable income."
One of the more notable voices of dissent on the topic is coming from
Congress.
The Times writes "Sen. Sherrod Brown (D-Ohio), chairman of the Senate
Banking Subcommittee on Financial Institutions and Consumer Protection, was
so flummoxed that he wrote a letter to Citi's chief exec, Vikram Pandit,
calling on him to stop sending miles-related tax forms to customers."
"The last thing Citibank should be doing is creating baseless fear in middle
-class families, or placing a nonexistent tax burden on the backs of
families who are already struggling to make ends meet," Brown is quoted by
the Times as saying in the letter.
And, for those keeping track at home, Citibank valued the AA miles at about
2.5 cents a mile -- or roughly the equivalent of $625 for the 25,000 miles
needed for a round-trip domestic award ticket. | E*******r
发帖数: 2710 | 2 citi太坏了
自己从航空公司买来0.5 cent/mile
发1099给自己来2.5 cent/mile的deductible
如果它总体税率在20%以上
它这些发的bonus就是空手套白狼啊
who
account
【在 b***n 的大作中提到】
: Frequent fliers jolted as Citibank says some miles are taxable
: Some American Airlines frequent-fliers got a jolt this week after Citibank
: sent tax forms that listed miles as taxable miscellaneous income.
: The Associated Press reports the 1099 tax forms "were sent to customers who
: were given American Airline miles for opening a checking or savings account
: last year. That's causing confusion -- and possible concern -- among those
: who never before reported their frequent flier miles and other credit card
: rewards as income."
: The Los Angeles Times writes the AA customers who received the 1099 tax
: forms from Citibank now could be "on the hook for paying related taxes or
| f*******r
发帖数: 302 | 3 学习了
【在 E*******r 的大作中提到】
: citi太坏了
: 自己从航空公司买来0.5 cent/mile
: 发1099给自己来2.5 cent/mile的deductible
: 如果它总体税率在20%以上
: 它这些发的bonus就是空手套白狼啊
:
: who
: account
| l*********2
发帖数: 5575 | 4
操操操
【在 E*******r 的大作中提到】
: citi太坏了
: 自己从航空公司买来0.5 cent/mile
: 发1099给自己来2.5 cent/mile的deductible
: 如果它总体税率在20%以上
: 它这些发的bonus就是空手套白狼啊
:
: who
: account
| d*******o
发帖数: 5897 | | e******e
发帖数: 2530 | 6 貌似AA的信用卡bonus没关系，文中好像说的是checking 或者 savings
who
account
【在 b***n 的大作中提到】
: Frequent fliers jolted as Citibank says some miles are taxable
: Some American Airlines frequent-fliers got a jolt this week after Citibank
: sent tax forms that listed miles as taxable miscellaneous income.
: The Associated Press reports the 1099 tax forms "were sent to customers who
: were given American Airline miles for opening a checking or savings account
: last year. That's causing confusion -- and possible concern -- among those
: who never before reported their frequent flier miles and other credit card
: rewards as income."
: The Los Angeles Times writes the AA customers who received the 1099 tax
: forms from Citibank now could be "on the hook for paying related taxes or
| x*******u
发帖数: 1590 | 7 checking和saving老早就这样了吧
cc的bonus不发
who
account
【在 b***n 的大作中提到】
: Frequent fliers jolted as Citibank says some miles are taxable
: Some American Airlines frequent-fliers got a jolt this week after Citibank
: sent tax forms that listed miles as taxable miscellaneous income.
: The Associated Press reports the 1099 tax forms "were sent to customers who
: were given American Airline miles for opening a checking or savings account
: last year. That's causing confusion -- and possible concern -- among those
: who never before reported their frequent flier miles and other credit card
: rewards as income."
: The Los Angeles Times writes the AA customers who received the 1099 tax
: forms from Citibank now could be "on the hook for paying related taxes or
| j****a
发帖数: 5777 | 8 2.5c/m,都卖给citi算了。
【在 E*******r 的大作中提到】
: citi太坏了
: 自己从航空公司买来0.5 cent/mile
: 发1099给自己来2.5 cent/mile的deductible
: 如果它总体税率在20%以上
: 它这些发的bonus就是空手套白狼啊
:
: who
: account
|
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