Update 3/22/24: More reports that an amended 1099 will be sent out within the next few weeks
Update 3/3/24: There are reports that an amended 1099 will be sent out to correct the Marriott 5-free-night bonus reporting.
Original Post:
Reports from readers and Flyertalk are about Chase 1099s being sent out, with a few surprises:
There are multiple reports of additional 1099 amounts which appear to be related to the five-free-night bonus on the Marriot card. The amount of the 1099 varies, and seems to be somewhere in the $400-$500 range. Traditionally, credit card signup bonuses are considered rebates on spend and are not taxed. Unclear if this is an error or if Chase decided that the free night bonus is legally a form of bonus which can not be considered a rebate.
Readers report getting $10 added to their 1099, apparently due to one of the small $10 mobile app or similar promos.
Points referral bonuses from the United card and Marriott card are getting 1099ed. It’s being valued at 1 cent per point. We’ve long known about 1099s for Ultimate Rewards bonuses since those can be cashed out at 1 cent per point; but even points referrer bonuses are getting 1099ed. We have seen the United referrer bonus get reported in the past, not sure if we’ve ever seen with Marriott; the 1 cent value doesn’t make sense there.
(There’s a report of United airlines credit card signup bonus getting 1099ed. Can anyone confirm?)
Chase is 1099ing the Chase Amazon card signup bonus of an Amazon gift card. We’ve reported on this in the past. It might only get 1099ed if you got $600+ in total bonuses from Chase (e.g. if you also got some referral bonuses).
Chase 1099ing an annual fee reimbursement. That’s just cruel.
Chase 1099ing a spend bonus
Chase 1099ing a paperless bonus
Let us know if you see this or other changes in the Chase tax forms. We’ll add a note about this as well in our main post Which Banks Send Out Tax Form 1099? (Discussion Post for 2023 Tax Forms).