In the interest of not providing incorrect tax-advice, I’m providing links to major research about taxing frequent flyer miles in the interest of yesterday’s decision in Shankar v. Commissioner in regards to Citi Thank You Points that you can interpret and consult with your tax-advisor on.
The Tax Treatment of Frequent Flyer Miles: An Update (July 7, 2008)
Why Does Citibank, But Not the IRS, Treat Frequent Flyer Miles as Taxable Income? (Jan. 24, 2012)
IRS Clarifies Tax Treatment of Frequent Flier Miles (Jan. 31, 2012)
Maule: The Frequent Flyer Tax Flap (Feb. 3, 2012)
WSJ: The Tax Treatment of Frequent Flier Miles (Feb. 5, 2012)
IRS Eyes New Ways to Tax Frequent Flyer Miles (May 30, 2014)
In short it appears that frequent flyer miles and points are taxable and reportable. As always, consult with your CPA on how to report these earnings, or how it effects you.
Are you worried about your frequent flyer miles and points being taxed?
Hat Tip: TaxProf Blog
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