Published on February 6th, 2019 | by William Charles46
Did Citi Add Spending Requirements On Referrals To Avoid Them Being Taxable?
Citi has recently started offering referral bonuses on credit cards, one weird requirement is that the primary cardholder doing the referring needs to spend $500 before they are eligible to earn any referral bonuses. We’ve recently seen Chase, American Express & Discover issue 1099 forms for referrals. I don’t know for certain, but my gut feeling is that Citi added a spending requirement so that these referrals are being treated as a rebate (as normal credit card bonuses are) and aren’t taxable. Citi also limits you to $500/50,000 points per card, which is below the $600 threshold as well.
If that is indeed the case then I wonder if we will see spend requirements added for the existing cardholders for Chase, American Express & Discover referral bonuses to help avoid taxes.