Update 3/22/24: More reports that an amended 1099 will be sent out within the next few weeks. Update: now, Readers are reporting already receiving the corrected 1099 which leaves the Marriott bonus off. Yay!
Update 3/3/24: There are reports that an amended 1099 will be sent out to correct the Marriott 5-free-night bonus reporting.Â
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).
I got my corrected 1099 for $0 for my Marriott account (was $499). A few days later chase sent a letter telling me to expect a corrected 1099 AND stating they would reimburse me for any costs to re-file. I haven’t filed yet but will have to have my accountant re-do that page and remove the $499 which I imagine will shift things around.
Hey there! I received 2 1099-misc forms from Chase for my Marriott card.
1 for $392.01
1 for $400
I then received a correction saying the other income is $0, but it didn’t tell me which of the 2 forms was the cancelled out one. I called Chase and they did not give me any info, and suggested I contact the IRS directly, which I did but they weren’t helpful either! What should I do here? I assume the $400 was for the 40k bonus points I received on a referral, and the $392 was for 3 free nights for opening up my card. Would I 0 out both of those forms? Or just the bonus points?
Only the $392.01 Marriott one – referrals are still taxable.
@Misha each 1099 has a box which shows an account number. That would not be your cedit card number, but still a unique value. Compare those numbers and you will see which 1099 is amended… but it has to be $392 as 40k referral is reported as $400 even and taxable. But it is good to compare and make sure.
Good luck
V.
Thanks! But that’s the thing, both forms, and the correction form, had in the details section: account number – account description, with the same exact credit card number listed on all 3 forms. My confusion further goes into if I then made less than $600 from chase, which should be the case after the correction, why would I have to report?
Regarding the second question, in my opinion (not a tax advice), the income is income.. and technically has to be reported to IRS regardless if you receive 1099 or not. Usually, people do not report unless they get 1099, and IRS does not do anything about it because it is not really possible for them to find out if a person was paid. But still technically any income is taxable. When you got 1099s for the wrong amount the can of worms has been opened… although Chase corrected a mistake, and removed your Marriott bonus from your taxable income, they cannot send you the 1099 for $0 as you earned $400. There is no way to report it as $0 now… they can only correct it to what you actually earned. So, unfortunately, due to their mistake IRS has been notified about your $400 earnings (Ink Referral) and there is no way to undo that.
May be I misunderstood… and 40K referral bonus was also on Marriott card? If that is the case then that would explain the same account number on both 1099s. Although in that case it is strange that they sent you 2 1099s for the same account instead of just sending one for combined amount.
Still, although corrected form could be interpreted as combined $0 amount for the account, it is unlikely. As referral bonuses are really taxable. I would play safe and report $400 from the referral bonus to avoid any issues with IRS, especially that it is a taxable income (unfortunately).
So my amended return would net me $82 back in federal tax paid. Worth it to file? Seems like a 1040-X through turbo tax isn’t very difficult and I have nothing fancy going on with my taxes if they audited me or took a closer look. Didn’t know if there was something I was missing. Would also get $16 back from my state but that doesn’t seem worth the time.
It’s free on TurboTax, right? Then why not?
Yeah I kind of thought the same thing. Just saw some people being apprehensive in the comments below. I’m cheap (hence why I hang on on doctor of credit!) so $82 is $82!!!
Once I saw this I intentionally did not sign up for this card bonus. Now that it’s been reversed its back on the table.
Ok
😆😆😆
They report electronically to irs. Just push a button to fix
I got one and so did my wife; but the amount was not the total that we received in 2023. I can’t remember how much less though.
Received my corrected 1099 for my 5 night Marriott bonus yesterday. I never asked them to fix it, so I assume it must be happening for everyone. The 1099 they sent me earlier this year was for around $410, this corrected 1099 is $0.
I wonder how much it costs to send out corrected 1099s en masse. Also curious about career prospects of person(s) who made initial decision.
It seems like this shit happens every year. So I’d guess it’s the same dumb ass(es).
It costs far less than the tax offset credit Chase is earning by reporting this as “lost income,” and the IRS is happy to oblige.
Big banks make the rules, change the rules, and then break them again only to reintroduce the new rules. We, little guys, learn how to “play the CC game” only to find out that we’ve always been the pawns and, again, fallen for another trap.
“tax offset credit Chase is earning” — You have no idea what you are talking about. There is no such thing. Information reporting (1099s, etc. ) by banks and others is required by law, they are not compensated or otherwise rewarded by USG for doing so — it’s a cost of doing business.
I got one today that changed my Marriott Bonvoy Boundless sign-up bonus for “3 free nights up to 50,000 points per night after spending $3,000 in three months” from $474.40 to $.00 as it should be.
I also received a corrected 1099 today for the Marriott card. I didn’t call and report the issue.
I filed taxes earlier this week leaving off the amount ($492). Glad I did. I was prepared to write a letter if I got audited.