Citibank sending 1099s on airline miles earned via promos/bonuses

[Carol C]

Check this out, via Smarter Travel. Not sure I'd go so far as to call it a "scam" as this article does...but this is not great news for folks who like to accumulate airline miles!

http://www.smartertravel.com/blogs/...BA22E1C01&nl_cs=10412271::8502012::10452834::

 

[presley]

I really hate banks.

 

[Timeshare Von]

I guess I'm really happy I got my 150k miles from them in 2010 . . . and was not issued a 1099. Based on the article, that would have been a $3,750 taxable event. They are ripping people off saying the average coach ticket is 25k miles and is valued at $625, thereby making the miles are worth $ .025.

Savvy fliers may use their miles only for the more expensive tickets, but rarely is a coach ticket within the USA that expensive.

 

[Art]

Lots of discussion over on Flyer Talk. Apparently this topic is hot at this time every year.

In particular, the IRS seems to discriminate between miles awarded for banking (checking, savings) activities and other financial activities (credit cards).

Here is a link to the Flyer Talk post that seems relevant http://www.flyertalk.com/forum/15906023-post16.html

Art

 

[blueparrot]

That stinks, but good thing that I do not use them!

 

[Timeshare Von]

Another article, a bit more info.