Chase has sent out corrected 1099 forms to people who received an incorrect form in January. The updated form also comes with a short apology (“we apologize”) and F.A.Q’s. It looks as follows:
Chase had to send out this correct as some things were incorrectly valued, for example a paperless statement bonus of 500 points was valued at $500 when it should have been valued at $5. It’s unclear if other things such as upgraded bonuses have been ‘corrected’ as normally we’d expect them to be treated the same way as a traditional sign up bonus is. We did contact Chase to get clarity regarding that point and we have not received any response despite repeated attempts.
It’s also not clear what will happen to people who receive a form only because the incorrect $500 value put them over the $600 threshold, although even if you’re under than threshold you’re still required to pay tax on that income but Chase isn’t required to send out a form. It would have been nice to see Chase extended a courtesy credit given the hassle involved, or at least an apology that was more than two words.
Hat tip to reader Grant G
Received a “corrected” 1099 dated 2/15 on a Freedom Unlimited card for which Chase had previously issued a 1099 for $500. The new number is $5. I had previously asked Chase what the $500 was for and they just sent me some generalized blather (dated 2/21) about a rewards program. Silly, because Chase Unlimited only earned me 1.5 in points per dollar spent. Never did a referral.
Apology?
How about immunization of 5/24 and 1/48!!!
“It would have been nice to see Chase extended a courtesy credit given the hassle involved”
Then they would have had to 1099 it next year!
At what point can we presume no 1099 received for $600.00 referrals will or will not come?
I got $600 in URs for CIP referrals in Nov and Dec 2018.
You should probably still report $600, since you know the point conversion rate from reading this. Not sure why people keep assuming if you do not receive a tax reporting, you do not have to pay tax. You need to report all income earned worldwide. Now that you knowing not reporting this and IRS can prove it, keeps the statute of limitations open for auditing your tax return instead of the 3 years due to false reporting. I would recommend all to report as interest income, not other income, on your tax return. This is assuming everyone here is US citizen. If not, you will be to provide Chase W-8-BEN form so they can provide you a Form 1042S on gross interest income for this.
What do you mean by Dec 2018. When the click happened? When the points went pending? When the points became available for use? I ask because what if Chase has it in their books as a 2019 expense so you get a 1099 for it next year?
ETA: I’m waiting until the dust settles more and will file in April personally
Exact reason why people should wait until March to file taxes. Corrected W-2’s, 1099’s always happen.
Totally disagree. We expect professional organizations to do the right thing. Mine taxes are done and refund is in the bank.
I totally disagree with your disagreement and 90% of the world probably does, too.
90% of the world has no idea about tax returns, let alone 1099s.
And Chase did the right thing and corrected the 1099. These things happen and they did the right thing.
Lol if you expect professional organizations to do the right thing then life is going to be a b!tch
Lols. Doing the right thing for a “professional organization” is filing the proper information with the tax authorities by the due dates. When due dates are missed the organization pays the government the appropriate fines. If it affects your taxes that’s your personal problem.
I agree. The deadline for 1099s is 1/31, some investment 1099s are more like 2/15. I just got my last one a week ago. End of this month is typical for me to get everything to my accountant. I have been burned on a corrected 1099 from Cap one investing that was issued on April 16 one year. That sucked.
Bottom line is to keep track of all places you do financial business with and make sure you have what you need before filing. We’re ultimately responsible.
So what if Chase 1099’d under the $600 threshold? They often send 1099-INTs for $3 and $4 in interest even though the threshold is $10. With the elimination of 1040A and 1040EZ it’s not that difficult to just report it under “other income”.
So what? The what is that for the fact that it should never have been reported. You’re telling me you’d put down $400 on the 1099-MISC line for referrals if they never sent a 1099?
For example, the $400 I would have never been issued a 1099-MISC for, and thus never paid taxes on, I now will have to pay the tax on the $400 because the $500 mishap put me over the $600 threshold, giving me a 1099 now.
So you will actually have to report what you were LEGALLY REQUIRED to report now? Too bad.
Name me one person that was reporting Chase referral bonuses (especially someone that just got 1) before this year’s 1099 fiasco.
ZERO. Everyone slamming those asking/complaining about this by saying it was always reportable, it was required, you can be pursued by Uncle Sam for not reporting, etc. can just get off their freaking high horse because NO ONE was reporting these or any other referrals as income.
*steps off soap box*
I’m interested to see DPs on what happens for those <$600 as well. So far I don't think we have any DPs though.
I’m still not convinced that referral bonuses are actually reportable income. Especially if they’re in the form of points/miles, given that the terms of basically all these programs say that we don’t actually own the points/miles. How can I possibly owe taxes on something I haven’t received ownership of?
“They [Chase] often send 1099-INTs for $3 and $4 in interest even though the threshold is $10.”
I’ve had Chase bank accounts for many years. They have never sent me a 1099-INT if I earned less than $10 total interest/bonuses for the year, and their system outright refuses to generate one in that situation, even for download-only.
I just filed a relative’s $3.78 1099-INT: https://snag.gy/Tyofns.jpg
This is not the first time they’ve received one either.
Interesting that they’re not more consistent in their behavior. Maybe a regional/state difference? Looks like your relative is in CA, I’m in TX.
We received 1099 on $0.90 this year.
Last year I had one on $0.10.
They seem to be the interest on closed Saving accounts that Chase failed to correctly calculate the accrued but not yet posted interest at the time of closing the accounts.
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We received a 1099-INT for $0.90. We dont even know where this thing coming from. Just one day last year we each got a $0.90 check. Then the 1099-INT this January. :rolleyes:
Other banks dont send anything below $10 as this is permitted by IRS.
I have read that TD does not even send out 1099 on $200 bank account opening bonus which should be subj to taxes.
This is why it’s better to wait to file your taxes. You never know until you see something unforeseeable like this occur.
Yes but waiting increases your risk of someone filing a fake return with your identity. In my experience, latter February is about right
Just request a PIN from the IRS, problem solved.
USAA doesn’t even send their 1099-DIVs out until mid February, so I’m forced to wait until mid to late February anyways.
Not really. The risk is small for many/most. And filing an amendment isn’t that big of a deal. But if someone feels better waiting v that’s OK too.