Update 2/4/19: After looking over more datapoints it seems that Chase is only issuing 1099 forms if cardholders received $600 or more in referrals. Some people originally said they were issued forms for referrals under $600 but after talking with them they received under $600 on a specific card, but more than $600 in total. If anybody received a 1099 form and received under $600/60,000 points in referrals in total then please let us know.
A few days ago we reported that American Express was sending out 1099 forms for referral bonuses. It seems like they aren’t the only issuer doing this, with readers reporting also receiving 1099 forms from Chase for referral bonuses.
Chase is valuing all points at 1¢ for the purposes of these forms. Note: Only referral bonuses are getting 1099s, not signup bonuses or any other sort of bonus, regardless of how it was redeemed. These forms are being sent out even if you did not receive $600 worth of referrals ($600 is the threshold where financial institutions are required to send out the form, but they can send out forms if the amount is under this and you’re supposed to self report anyway).
This isn’t the first time Chase has done this, in 2017 they also sent out a 1099 only to later retract it. The fact they have sent out this form again and the fact American Express has done the same leads me to believe they have received a private letter ruling from the IRS.
Related:
- Follow-Up: Chase Sending Out 1099 for Other Bonuses Too, e.g. Paperless & Retention Bonuses; Also Mistakenly Reporting 500 Points as $500(!)
- Follow-Up: Chase To Send Out Corrected 1099 Forms
- Do Banks Send 1099s for Referral Bonuses?
- Which Banks Send Out 1099s for Account Bonuses?
- American Express Sends Out 1099s for Referral Bonuses – Hilton @ .67 CPP, Everything Else @ 1 CPP
