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Old 03-16-2012, 10:50 AM   #41
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Some of the credit card rewards I've seen make no sense at all. For example, you can get $250 cash back with 25,000 points. Or, you can make a $250 donation to a charity for 30,000 points. Why not take the cash and give it to the charity? Plus, you would get the tax deduction. Just silly. Who does that?
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Old 03-16-2012, 08:30 PM   #42
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Some of the credit card rewards I've seen make no sense at all. For example, you can get $250 cash back with 25,000 points. Or, you can make a $250 donation to a charity for 30,000 points. Why not take the cash and give it to the charity? Plus, you would get the tax deduction. Just silly. Who does that?
Some people prefer convenience greatly over wealth building.

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Old 03-16-2012, 10:48 PM   #43
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Income tax on miles offers.

Quote: "Citi customers ..... Now, the Los Angeles Times reports that these customers are receiving 1099 tax forms ..—.. One customer .... shocked to get a 1099 for $645."

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Old 03-18-2012, 06:58 PM   #44
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I always do an application in each of our names. I do not put us a secondary on each other's cards as that will show on your credit report as having more credit.

As to the 1099 forms, if you do further research you will find that has been resolved. Those getting 1099s were the peeps that opened checking or savings accounts where they were given $100 or $150 for opening said account.
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Old 03-18-2012, 07:04 PM   #45
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As to the 1099 forms, if you do further research you will find that has been resolved. Those getting 1099s were the peeps that opened checking or savings accounts where they were given $100 or $150 for opening said account.
I opened a Citibank checking account in 2011 for miles, but no dollar "award" component. Didn't receive a 1099, thank goodness.
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Old 03-22-2012, 11:09 AM   #46
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I also recommend looking at where you want to go and how, not what your home airport is. For instance, if you just wanted to fly domestically, my father just scored a SW companion pass without stepping on a southwest plane. So now, my father and mother travel 2 for 1 (even on rewards) plus they have 100k+ points to burn through on SW. If you wanted to go to china first class, AA points are probably your best bet.
Very very good advice.

Another point is that *usually* redeeming miles for domestic tickets isn't as good a value as redeeming miles for international flights. Usually domestic tickets go for around $300 or less, while international can go for $800 or more, and only cost twice as many miles to redeem.
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Old 03-24-2012, 12:26 PM   #47
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Actually there is no best program for the entire population. You need to look at who services your local airports best and choose who will fit your travel desires. West Coast, flights are lousy on American. Much better choices on United.
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Old 03-26-2012, 04:18 PM   #48
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Some good posts. Agree there is no "best card" for everyone. i also agree that many (perhaps most) FF type points expire worthless or abandoned by users. Some say this is a reason not to collect them. I believe the opposite. Since many points expire worthless the card co's can offer rewards that are very valuable for the right kind of traveller. We have redeemed points for several business class flights to Asia, Europe, Africa, and South America. Typically these flights would cost anywhere from $5-10k each so if this is the kind of travel you do (in our case it is) and you have the flexibility (we do), these cards can represent by far the best reward equation. I figure the reward rate can be 5-10% of spend on the card. Agree it isn't worth redeeming FF points for domestic economy class or even business class. The real bang for your buck is long haul.overseas business or first.
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Old 03-27-2012, 01:04 PM   #49
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Yep, earn 25,000 points = $250 Visa Cash Card

https://www.penfed.org/Platinum-Rewards/
Thanks. I just applied for this, so that I can get the $250.00 visa cash card. It has been a long time since I applied for a CC. It said that I was approved, but I said I wanted to do it by mail, so I am not sure how long it will take. I was just at Southwest Airlines site and I need to book 6 tickets, which would be $1104.00. I don't know whether I should wait for the CC to come and risk the price of the tickets going up or use my Discover Cashback Bonus CC.
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Old 03-27-2012, 01:10 PM   #50
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[QUOTE=ronocnikral;117340

I also recommend looking at where you want to go and how, not what your home airport is. For instance, if you just wanted to fly domestically, my father just scored a SW companion pass without stepping on a southwest plane. So now, my father and mother travel 2 for 1 (even on rewards) plus they have 100k+ points to burn through on SW. If you wanted to go to china first class, AA points are probably your best bet. [/QUOTE]

Would you mind telling how they managed to do this. SW is my airline of choice, since they have the free bags. If you could even tell me where to read about this, I would appreciate it.
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Old 03-27-2012, 01:21 PM   #51
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Income tax on miles offers.
Quote: "Citi customers ..... Now, the Los Angeles Times reports that these customers are receiving 1099 tax forms ..—.. One customer .... shocked to get a 1099 for $645."
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Tax on frequent flyer rewards may only be due when you don't have to make a financial purchase on other things to get them. If you get your miles as a sign-up bonus or other promotion they are probably not taxable as income. But there are some caveots...

Taxes & credit card rewards | Bankrate.com

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There's been some confusion about how the Internal Revenue Service views rewards points.
The uproar started when some Citi customers received a 1099-MISC tax form from the bank for the reward miles they got after signing up for a new checking or savings account. The bonus rewards were part of a promotion by Citi.
...


That got people worrying about other rewards miles or points, specifically those tied to credit cards. Are those taxable as well?
Probably not, says Mark Steber, chief tax officer at Jackson Hewitt Tax Service. Traditional rewards you earn by spending money on your credit card are considered nontaxable because it required a financial activity to receive them, Steber says.
The waters get a little murkier when it comes to sign-up bonuses offered by credit cards issuers. Those are the kinds that offer you 30,000 miles or a $300 bonus just for getting the card.
"Those are more complicated and convoluted deals," Steber says, but most of them aren't taxable. Feel free to exhale now.
The reason is because those offers usually come with some kind of transactional hoop to clear before the bonus lands in your pocket. For example, last year the Citi ThankYou Premier Card offered 50,000 points for signing up ($665 in airfare value), but only after cardholders spend $2,000 in three months, according to Synovate. That last part makes the bonus exempt from taxes, says Steber.
...


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Old 06-10-2012, 11:49 PM   #52
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Just booked first class SLC->HKG (2 night stopover) HKG->PNH (Cambodia). This includes a (short) ride on Thai's new A380 in first class (hoping this pans out). Returning Yangon via Seoul (10 hrs, will have lunch in the city) on Asiana's business class seats. Very excited, especially for a price tag of $160 for two tickets!

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Would you mind telling how they managed to do this. SW is my airline of choice, since they have the free bags. If you could even tell me where to read about this, I would appreciate it.
Sorry, I came to brag about a redemption I just made and just saw this question. In case you haven't figured it out, my father applied for 2 credit cards at 50,000 miles each. This counts towards the CP. I can't find an offer for 50k miles per card right now, but I would wait for a couple months as it bounces between 25k and 50k.
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Old 06-13-2012, 06:20 PM   #53
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Ronoc, that is great! My friend who has been my CC guru in starting all this says he will be up to 600,000 miles when he starts his RTW travel plans next month. I'm nowhere near him, that's for sure!
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Old 06-13-2012, 09:49 PM   #54
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Thanks Ronoc. I just flew in this morning from san diego to pitt with my granddaughter and our tickets cost more than yours did. Great job on finding the deals. I am going to have to check into this more someday. Never enough time somehow.
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Old 06-14-2012, 10:08 AM   #55
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Sarah, stick with it as it does work. We are sitting on just over 2 million miles and we are constantly redeeming. In the past 3 years we did 2 round trip tixs on Cathay Pacific to Hong Kong in First Class, 1 trip to London in First Class, 1 trip to Paris in Business Class. Additionally we have stayed in really nice hotels on most of our trips and have paid next to nothing to do so.

Re the Southwest deal, what people have been doing is applying for one card in their own name and getting a second card claiming it is for their business. Personally I don't do that because it crosses my ethical barriers as I do not have a business and do not want to lie and say I have one. If you buy and sell on EBay you can claim you are running a business I believe. Check out Travel Tuesday Top 10: Best Credit Card Companion Tickets Deals | The Points Guy. He covered this very thing a couple of days ago.
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Old 06-14-2012, 10:30 AM   #56
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DangerMouse, I am jealous of the CX F tix. I heard it is something to experience...I'm hoping to accumulate enough miles for a trip via HKG on CX in F to Colombo next spring (and hopefully a side trip to the Maldives).

Since DW insists on having her business (and makes me do all the stuff she doesn't want to, read:accounting, tax filings, applying for business licenses etc), I have no ethical qualms with applying for a business CC 3 or 4 times a year.
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Old 06-14-2012, 10:33 AM   #57
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If you can do the business card now take a look at the Ink Bold for 50k UR and keep your eyes out for when AMEX have the special one day offer on the Business AMEX Gold that comes with 75k bonus for the $10k spend.

Make sure you read the key blogs every day so you know what is going on and can act quickly.

The FC on Cathay is good. The service is impeccable. We have another trip booked on CX J later this year, thought we would see if we could wean ourselves off FC and make do with J.
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Old 06-14-2012, 11:39 AM   #58
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yeah, I almost pulled the trigger on the AMEX gold business 75k offer when it had the one day deal a couple months ago, but I was in the middle of some other things. I've already worked through the bold, but my wife still needs to "upgrade" her regular ink business to the bold. And I need to get the regular ink business card. And we both still need to work the chase freedom card as well. Then it is on to SPG's program. then maybe I'll start working the MR program....so many offers, so little money to spend.
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Old 06-15-2012, 09:44 AM   #59
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You would be surprised at how quickly the points build up once you are conscious of what you are doing. We have the AMEX Gold and we always spend $30k a year on that so we get the 15k bonus points. I am always focussed on category as well. Gas, groceries, airline tix are on the Gold AMEX. Dining is on the Chase Sapphire. Anything more than $5 is charged to card.

BTW if you don't already know about it, starting looking in US Airways Grand Slam which should be coming up in Sept. It's a good way to get points fast. Though going on your routing you may already be in that game as I see you are booked on a Star Alliance journey.
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Old 06-15-2012, 09:59 AM   #60
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I can't seem to get an e-rewards invite from US air. I've thought about emailing US air now (instead of in the fall when the grand slam is going) to try and see if they will invite me (and DW). Other than that, I've been doing e-miles for both my wife and me.
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