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This page may include: credit card ads that we may be paid for (“advertiser listing”); and general information about credit card products (“editorial content”). Many, but not all, of the offers and clickable hyperlinks (such as a “Apply Now” button or “Learn More” button) that appear on this site are from companies that compensate us. When you click on that hyperlink or button, you may be directed to the credit card issuer’s website where you can review the terms and conditions for your selected offer. Each advertiser is responsible for the accuracy and availability of its ad offer details, but we attempt to verify those offer details. We have partnerships with advertisers such as Brex, Capital One, Chase, Citi, Wells Fargo and Discover. We also include editorial content to educate consumers about financial products and services. Some of that content may also contain ads, including links to advertisers’ sites, and we may be paid on those ads or links.

For more information, please see How we make money.

Advertiser Disclosure

We are an independent publisher. Our reporters create honest, accurate, and objective content to help you make decisions. To support our work, we are paid for providing advertising services. Many, but not all, of the offers and clickable hyperlinks (such as a “Next” button) that appear on this site are from companies that compensate us. The compensation we receive and other factors, such as your location, may impact what ads and links appear on our site, and how, where, and in what order ads and links appear. While we strive to provide a wide range of offers, our site does not include information about every product or service that may be available to you. We strive to keep our information accurate and up-to-date, but some information may not be current. So, your actual offer terms from an advertiser may be different than the offer terms on this site. And the advertised offers may be subject to additional terms and conditions of the advertiser. All information is presented without any warranty or guarantee to you.

This page may include: credit card ads that we may be paid for (“advertiser listing”); and general information about credit card products (“editorial content”). Many, but not all, of the offers and clickable hyperlinks (such as a “Apply Now” button or “Learn More” button) that appear on this site are from companies that compensate us. When you click on that hyperlink or button, you may be directed to the credit card issuer’s website where you can review the terms and conditions for your selected offer. Each advertiser is responsible for the accuracy and availability of its ad offer details, but we attempt to verify those offer details. We have partnerships with advertisers such as Brex, Capital One, Chase, Citi, Wells Fargo and Discover. We also include editorial content to educate consumers about financial products and services. Some of that content may also contain ads, including links to advertisers’ sites, and we may be paid on those ads or links.

For more information, please see How we make money.

Hello Taxes! Chase Is Sending Out 1099s for Referral Bonuses

February 4, 2019 By Jason Stauffer

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Last week we got the news that AMEX has been sending out 1099s for referral bonuses. Right on the heels of that, people are reporting that Chase is doing the same.

It looks like Chase is valuing all points at 1 cent each and you’ll be getting a 1099 if you earned $600+ in points from referrals. I earned a couple referral bonuses on my Chase Sapphire Preferred® Card last year, but I’m well under the $600 threshold.

If You Earned Bonus Points By Referring Friends Last Year, You Could Be Getting a 1099 From Chase

Chase 1099 Referral Bonuses

There are a lot of opinions out there on what do to about this. Personally, I would pay the taxes. Remember if you’re getting a 1099 for $600 that’s the extra income you need to report not the extra taxes you’ll pay.

Even though I’ve heard some experts mention that it might be possible to fight this, I can’t imagine that it would be worth the effort for most people. If your tax rate is 25% you’ll only end up paying $150 for $600 in extra income.

I think a 1 cent value for Chase Ultimate Rewards points is fair, but if you earned a referral bonus for Marriott or IHG points that’s definitely an over valuation. Again, I doubt it’s worth fighting it, but you’ll have to make that call for yourself.

I’m not a tax professional, so if you plan on doing anything other than just paying up be sure to consult one. And please don’t just ignore this, 1099 forms are sent to you and the IRS. So if you file your taxes and don’t report your 1099 income you could end up paying interest and penalties on top of the extra taxes.

Did you get a 1099 from Chase? What did they value the points at?

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Hat tip: One Mile at a Time

Jason Stauffer

Writer

Jason Stauffer was a writer for Million Mile Secrets where he covered points, miles, credit cards, airlines, hotels and general travel. His work has appeared in The Points Guy and NextAdvisor.

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Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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