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The Tax Treatment Mystery of Frequent Flier Miles

For many years now, there has been much discussion about the tax implications of those free frequent flyer miles you sometimes earn. This issue has recently gained attention following the disclosure that Citibank customers were notified that miles they received for opening new accounts last year produced taxable income. Citi sent these customers "1099-Misc" forms, which tell taxpayers that income is being reported to the Internal Revenue Service. The recipients were then required to include that income on their 2011 tax returns. Needless to say, there were some that expressed surprise and anger.

Team PaycheckCityMay 01, 2012
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