Chase Sends Out 1099’s for Ultimate Rewards Bank Bonuses

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1099’s for Chase Ultimate Reward’s Bank Bonuses

If you were wondering whether your Sapphire Banking Bonus would be taxed and how much those Ultimate Reward’s Points would be valued at Doctor of Credit reported this week that Chase was in fact sending out 1099’s to customers who received Bank Bonuses in the form of UR points.

Chase Ultimate Rewards Points Guide: Earning, Redeeming and Sapphire, Freedom and Ink Brands

This is not a new concept, cash bonuses always trigger a 1099. Additionally Citi ThankYou Point Checking bonuses have been treated as taxable, so it’s not a shock for Chase to do the same. The more likely issue was the value of the points. Chase has valued them at 1 cent a piece which is fair since you can effectively cash them out for the same value.

Quick Thoughts

Rewards earned from credit cards are not treated as taxable income whereas rewards earned from banking bonuses are taxable. The affect taxation has on the value of your points really depends on how much you value your points at and what your effective tax rate on each point is. Some people are in lower brackets and pay way less in state and federal taxes than others. On a 60k UR bonus, one person could pay $200 in taxes and someone else could pay nothing on the same bonus, so whether this affects you and how much is entirely dependent on your situation. I personally dislike bank bonuses and anything that increases my taxable income.

HT: Doctor of Credit

Bethany Walsh
Founder of, Bethany is a points, miles and loyalty program strategist who enjoys luxury travel and lives for a deal. When Bethany is not following her Miles to Memories family around the world to various meet-ups you can find her on a beach, in a casino or on a mileage run.

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  1. I’m working on that bonus right now. I went into it expecting a 1099 at 1cpp so I’m fine with this. Obviously no 1099 would be ideal, but I’m not going to complain. Parked 75k into vanugard prime money market fund and will ride it out.

  2. “I personally dislike bank bonuses and anything that increases my taxable income.”


    Income tax rates are marginal. More is always more. Earning more income can never result in you being worse-off from an income tax standpoint than earning less.

  3. If already done, towards the end of 2018 was a good opportunity in the markets to lock in some losses to offset. Good to keep in mind/plan for those who will receive this for 2019 instead.

  4. I think they went out since it was a bank 1099 rather than a credit card signup. I think the law states the bank points need to be taxed. I am sure some people are not happy.


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