3 ms·
Do you have to pay taxes on using the miles?
by kriro 11y ago
Do you have to pay taxes on using the miles?
- ghaff 11y agoInteresting question. The answer seems to be unclear. According to this article http://www.forbes.com/sites/kellyphillipserb/2014/08/28/tax-court-sides-with-irs-in-tax-treatment-of-frequent-flyer-miles-issued-by-citibank/ http://www.forbes.com/sites/kellyphillipserb/2014/08/28/tax-... miles given as "thank you points" can be taxable although there doesn't seem to be a definitive rule. Previously the IRS more or less said that they weren't going to pursue any enforcement of frequent flyer miles obtained in the usual manner. http://www.journalofaccountancy.com/issues/2012/aug/20125796.html http://www.journalofaccountancy.com/issues/2012/aug/20125796...
- ubernostrum 11y agoThere are small fees associated with redeeming miles on most US airlines. British Airways is also notorious for applying "fuel surcharge" fees (payable in cash only) to mileage award tickets, running into the hundreds-of-dollars range when redeeming miles for business-class or first-class tickets.
- strictnein 11y agoAccording to another article I read, he had to supply UA with a W9, so the answer is likely yes.