Last February Citibank gave away thousands of frequent flyer miles as part of an offer. Citibank customers who obtained frequent flyer miles as part of a promotion last year are getting a surprise in their mail box. The lending company is sending them a 1099 form, counting those miles as taxed income. Amy Miller, a director at H&R Block, however, told reporters: “Points, frequent flyer miles, cash back and other ‘in-kind promotional benefits’ are treated as rebates and are not taxable.” Source of article:
Citibank says frequent flyer miles are taxable.