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Are Credit Card Points Taxable By IRS?
I received a 1099 Misc today for bonuses above $600.
I called Chase to ask if points are considered taxable income, and the rep said that by transferring points to hotels and cashing them out for nightly stays, they then become taxable income that needs to be reported to IRS if above $300 in value.
I’m not the most tax-savvy person.
Is anyone aware of a way to use points for hotels without having to report the bonus to the IRS on yearly taxes?
I received 1 referral bonus (my husband) which was 40,000 points.
I’ve only redeemed 30,000 of those points on hotel stays so far.
I noticed a number to call on the 1099 sheet, which I plan to do tomorrow.
I’ll update here with anything I learn, if pertinent.
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3 Replies
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The 1099 is for referrals only, not for sign up bonuses.
You can avoid getting one by making fewer than 60,000 points in referrals.
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From my understanding, you get a 1099 for points earned from referrals, but not sign up bonuses or transferring points.
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No frequent flyer miles and credit cards points from sign up bonuses are NOT taxable.
You will only get 1099 form IF you refer someone and get referral points.
https://thepointsguy.com/credit-cards/complete-guide-to-paying-taxes-on-credit-card-rewards/
thepointsguy.com
Are credit card rewards taxable? - The Points Guy
Do I need to pay taxes on credit card referral bonuses, sign-up bonuses or bank account opening bonuses? Here is the complete guide answering these questions.
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