Viewfromthewing heard in a statement from Capital One that they count TSA Precheck/Global Entry credits in your form 1099-MISC toward the $600 threshold. Here was the official statement:
Required reportable payments include certain credits or gifts given to customers including the TSA Pre/Global Entry statement credit and courtesy credits via customer servicing; reportable payments must equal or exceed a total of $600 within a year for a customer to be eligible to receive the 1099-MISC form.
Just yesterday reader VL noticed their TSA credit counting on the 1099 form, and I dutifully added it as a note to our 1099 thread. With the official confirmation I thought it worth a dedicated post as something for everyone to keep in mind.
Referrals count on the 1099 at around 1 cent-per-point. Capital One has some weird math whereby they count the points value at slightly more than 1 cent ($0.010029), and so you’ll see some odd numbers on the 1099.
Reports are that the $300 Venture X credit is also not counting on the 1099. And the $200 Airbnb/vacation credit, as well as shopping portal credits, should not count on the 1099.
We haven’t heard of any other bank counting the TSA/GE credit credit in a form 1099-MISC. My thought would be that it’s just rebating a charge and would not constitute income. Counting referrals as income is common with all banks.
Again, important: Capital One is only sending out the form 1099-MISC when you earned more than $600 in a calendar year. For most people who just get the $100 TSA/GE credit and $100 on their Venture X card anniversary, you should fall under the reporting threshold and would not have to worry about a form 1099. But if you also referred some friends for the 25,000 points bonus, that might push you above the $600 reporting threshold.
As always, keep in mind, receiving or not receiving a form 1099 does not change in any way whether there is any actual tax liability. It’s just a reporting mechanism. However, by default, most people will just report any income for which they did get a form 1099. And most people won’t report things like small statement credits from banks, especially given that all other banks don’t seem to find them reportable. (I suppose they feel it’s like a rebate and is not taxable, but please consult your own tax advisor.) It is possible to adjust the income on a 1099, essentially disputing the banks calculation and only paying taxes on the portion you agree with.
Source: doctorofcredit.com