Credit Card Promotions
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Bonus frequent flier miles that are granted as part of a credit card's signing offer are taxable. That's what thousands of Citibank card holders learned last month after the bank mailed 1099 forms
to people who earned extra points by signing up for a new card. If you receive a 1099, don't ignore it, said Kay Bell, a tax expert at BankRate.com. The IRS is expecting you to report this income. Earned reward points, frequent flier miles and gift cards that are part of a debit-card or credit-card reward program, however, are generally not subject to income tax because they are considered a rebate for spending.