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.
Esta historia es de la edición April 2023 de Business Traveler US.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición April 2023 de Business Traveler US.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
Fast Company - In a partnership with SpaceX, United is rolling out revolutionary high-speed Wi-Fi on all its flights
United has become the first major U.S. airline to announce a groundbreaking partnership with SpaceX to equip more than 1,000 aircraft with Starlink WiFi. Passengers will soon enjoy high-speed, lowlatency Internet service, enabling seamless gate-to-gate connectivity across domestic and international flights.
Special Sauce - Celebrated chef and entrepreneur Giada De Laurentiis shares her Italian heritage through her television shows, restaurants, cruise partnerships and an exclusive line of curated products
Celebrated chef and entrepreneur Giada De Laurentiis shares her Italian heritage through her television shows, restaurants, cruise partnerships and an exclusive line of curated products
The Censoring of Social Media? - Why legislatures continually try to regulate freedom of expression, and what the courts are doing about it
There seems to be bipartisan agreement that everything from teen suicide rates to poor mental health and more is due to social media. The obvious solution, they believe, is to impose government oversight on how such services can be provided. Congress is considering sweeping social media legislation and a number of states have already enacted such laws.
Golden Age
Porsche celebrates a half-century of its 911 Turbo with a limited-editon model
The Season's Best Underseat Carry-Ons
Bags that make the most of your space while providing carefree convenience
Crystal Palace
Baccarat offers sparkling cocktails in Midtown Manhattan
East Meets West
Chef Cyril Lignac fuses French and Japanese cuisine in the heart of London
Bigger.Better.
American Express relocated and improved its Centurion Lounge at Seattle-Tacoma International Airport to address issues with overcrowding and enhance the customer experience
High Style
A nonstop journey from Singapore to Los Angeles in Business Class
Art History
A venerable Seville hotel doubles as a museum celebrating the culture of Andalusia.
