TAX SEASON IS here, and some frequent flyers keen on collecting bonus mileage and racking up credit card rewards may be seeing a pesky 1099 form in the mailbox showing taxable income amounts. Rest assured, if you are a points aficionado climbing the ladder of elite status, the IRS is not coming for your points or loyalty standing. The federal government took a look at that avenue some 21 years ago and decided it was too much of a quagmire to navigate. However, there are some clear cases where credit cards, flight rewards and the IRS do cross paths.
The good news is that rewards points gained from most credit card offers are not taxable income. That means the 100,000 points bonus from American Express or an airline-branded Chase account can still be redeemed for tickets, merchandise and cash and not chime bells at federal tax collection offices.
Instead, it is seen as a discount-a coupon allowing you to purchase an item at a discounted rate. And that is because those points are not free. To have the points vested in a loyalty account, the cardholder must do something for that exchange, mainly spend money. The points, in that case, are no more taxable than the airport lounge access a card affords or those free checked bags.
この記事は Business Traveler US の April 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です ? サインイン
この記事は Business Traveler US の April 2023 版に掲載されています。
7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、8,500 以上の雑誌や新聞にアクセスしてください。
すでに購読者です? サインイン
Train of Thought
As Amsterdam’s airport curtails flights because of environmental impact, KLM suggests that its passengers take to the rails
Entry Level
Why travelers are waiting weeks or even months to receive a new passport or renewal
Big Wheels
American Airlines offers a TSA-approved ground service between Philadelphia and surrounding airports
Le Bon Goût
Air France partners with Michelin-starred chefs for its new menus
First Glance
United unveils new high-end seats
Ring of Fire
In October and April, solar eclipses will dazzle the United States
Just Say Know
To improve mental health, learn new skills on the road—and have fun doing it
Rebalancing Act
How Finnair CEO Topi Manner led the airline through two external crises to bring it back on track
New Look
With industry innovations and a star-studded roster of clients, designer Peter Dundas is changing the shape of fashion
Food for Thought
The pioneering Spanish restaurant EI Bulli is transformed into a museum and culinary laboratory