http://www.smartertravel.com/blogs/today...2834%3A%3A
Last week, Citibank dumped a bombshell on some cardholders: It started issuing IRS form 1099 "miscellaneous income" notices to cardholders that had received big mileage "bonuses" for enrolling. In the past, the IRS has generally exempted miles from taxation, but, at least for now, it's drawing a distinction: Miles you earn by flying or by buying things with a credit card are not taxable, but miles you receive as a gift or premium in a promotion are taxable. Here are my early answers to some key questions you might have ... see link above for more
Last week, Citibank dumped a bombshell on some cardholders: It started issuing IRS form 1099 "miscellaneous income" notices to cardholders that had received big mileage "bonuses" for enrolling. In the past, the IRS has generally exempted miles from taxation, but, at least for now, it's drawing a distinction: Miles you earn by flying or by buying things with a credit card are not taxable, but miles you receive as a gift or premium in a promotion are taxable. Here are my early answers to some key questions you might have ... see link above for more