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Frequent flier miles taxable income?

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  • Description

    Citibank seems to think so

  • Duration 1:52
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Frequent flier miles can be a major bonus for travelers but do they also wrapped present taxable income.

Citibank things that -- -- The bank sending tax forms to people who received thousands of American Airlines miles.

The miles a reward for opening a checking or savings account.

Those forms value each mile it about two and a half cents and -- the total dollar amount as miscellaneous.

Income.

People were shocked to find out that they were are going to be tax for the miles that they received and at a pretty high rate to they're saying because this is.

A rebate or an incentive for opening up an account you should be held liable for the value those miles.

As tax time rolls around the question of whether airline miles or a form of income.

Potentially affects millions of people miles or one of the most common -- awards given out by credit card issuers.

If you do you -- at 109.

Travel expert Brian Kelly says to call city and dispute the and now that which they value the points if that doesn't work.

When you pay your taxes.

Only include the amount that you -- the points but include a letter of explanation to the IRS.

You can work with your town and come up with what you actually think the value of that of the miles are.

Kelly says to keep the original 1099 for your records in case the IRS notes the discrepancy.

The IRS says that because of the administrative Merck penis of valuing points is not pursued at taxation policy on them.

-- for the time being has no plans to do so.

Nor will -- go after tax -- who did not declare points and miles on their income tax forms.

In New York Brenda Buttner Fox News.

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