DOC, Miles Talk, and reddit are all reporting 1099s being issued for AmEx cash based referrals as well as points earned for referrals.
I am getting multiple letters from AmEx today marked important tax information. These are all reporting to myself and the IRS on bonuses earned at 1 cent per point. So that 15,000 MR bonus for referring your friend means you just made $150 taxable income from AmEx. The letters look like this:
Initially I thought they were counting the $550 waiver was being reported, but it appears to be taxes on the bonus earned. This is how they are valuing each point referred:
- Amex Membership Rewards: 1 cent per point
- Marriott (new): 1 cent per point
- Hilton: 0.67 cents per point
- Delta: 1 cent per point
Looks like were gonna have to do some withholding next year in anticipation of a bountiful referral year!