Bank of America 1099 form for credit card rewards?

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nvtech
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Bank of America 1099 form for credit card rewards?

Postby nvtech » Thu Apr 25, 2013 3:03 pm

I just activated a 5% cash back on Drugstores, Groceries and Gas Stations.

At the bottom of Terms and conditions I see something like this:

The value of this reward may constitute taxable income to you. You may be issued an Internal Revenue Service Form 1099 (or other appropriate form) to you that reflects the value of such reward. Please consult your tax advisor, as neither Bank of America, its affiliates, nor their employees provide tax advice.

*To be eligible for this cash back offer, your account must be open with charging privileges and you must activate this offer by June 30, 2013. From the date you activate this offer through June 30, 2013, you will earn 5% cash back for eligible purchases (excluding credits, returns and adjustments), up to a total of $25, in addition to the standard 1% cash back you earn on all purchases. To qualify for this cash back offer, the transaction must be assigned one of the following specified merchant category codes: Gas Stations (5541-5542), Grocery Stores (5411, 5422, 5441, 5462, and 5499), Drug Stores/Pharmacies (5122, 5295, 5912) and Restaurants (5811-5814) (each an "eligible purchase" for this offer).


Bksuper
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Location: California

Postby Bksuper » Thu Apr 25, 2013 10:45 pm

I thought that cash back is considered a reduced price, not taxable income.
Sole Ownership Cards:
1st Financial Bank Platinum Student Visa, $500 CL, Open Since 3/2012
Citi Forward Student Visa, $6k CL, Open Since 10/2012
Costco TrueEarnings Amex, $6k CL, Backdates to 1/2012
SallieMae Rewards Barclay Mastercard, $2.5k CL, Open Since 4/2013
Jointly Owned Cards (co-owner with mom, not AU, used and paid only by me):
Chase Amazon Rewards Visa Signature, $2k CL, Open Since 8/2012
US Bank Cash+ Visa Signature, $13.5k CL, Open Since 10/2012
Authorized User (Parents Pay/Use)
Costco TrueEarnings Amex $29.4k CL, AU since 11/2012

cashback
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Location: NY

Postby cashback » Thu Apr 25, 2013 10:52 pm

Depends on the company and the amount. Whether or not credit card rewards are taxable is a huge debate and there is no definitive answer. If a company sends me a 1099, Ill claim it. Its not worth fighting the IRS on whether it is income or not. I also make a substantial amount in CC rewards, so I do consider it income.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

LadyinRed
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Location: Los Angeles, CA

Postby LadyinRed » Fri Apr 26, 2013 9:52 pm

As someone who does a fair amount of 1099 employment, as a general rule of thumb you don't get one unless you make more than $600. So perhaps if you get more than $600 in rewards you will be taxed.
AMEX: Blue Cash Preferred (6% on groceries, 3% gas & dept stores)
Capital One: Venture (2 points per $1, equivalent to 2%)
Chase: Freedom (rotating 5% categories), Disney Rewards (1 point per $1, Disney benefits)
US Bank: Cash+ (5% bookstores / 5% Electronic Stores)

Bksuper
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Location: California

Postby Bksuper » Sat Apr 27, 2013 12:31 am

$600 from one bank or $600 from credit card rewards total? Does this count the approximated value of points when not yet redeemed?
Sole Ownership Cards:
1st Financial Bank Platinum Student Visa, $500 CL, Open Since 3/2012
Citi Forward Student Visa, $6k CL, Open Since 10/2012
Costco TrueEarnings Amex, $6k CL, Backdates to 1/2012
SallieMae Rewards Barclay Mastercard, $2.5k CL, Open Since 4/2013
Jointly Owned Cards (co-owner with mom, not AU, used and paid only by me):
Chase Amazon Rewards Visa Signature, $2k CL, Open Since 8/2012
US Bank Cash+ Visa Signature, $13.5k CL, Open Since 10/2012
Authorized User (Parents Pay/Use)
Costco TrueEarnings Amex $29.4k CL, AU since 11/2012

cashback
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Location: NY

Postby cashback » Sat Apr 27, 2013 12:37 am

Citi has on the Thank You web site a notice that if total redemptions is over $600 in the year they will 1099 you. Whatever value you get out of them, is what they count.
Credit Cards
Amex BCE 25K ---- PenFed Platinum Rewards 15.5K --- US Bank Cash+ 12K --- Discover IT 6K --- Citi Dividend 5K --- Chase Freedom 12.5K --- Amex SPG 6K --- Citi Thank You Preferred 15K

Not Used
Citi Simplicity - 5K, Sam's Club Discover - 10K

Future Cards
Sallie Mae World Mastercard

FICOs
Exp 772 - TU 781 - Equ 781

macmovieman
 
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Joined: Sun May 05, 2013 12:33 am
Location: Irvine, CA

Postby macmovieman » Sun May 05, 2013 12:36 am

I have earned $1100 with B of F rewards and I was thinking about having the money sent to me, but after reading this I might just have them send me $550 and get the rest later.



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