So called Travel Hacking

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."
Link

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

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.
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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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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!

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.
 
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!
 
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.
 
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.
 
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.
 
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.
 
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. :(
 
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.
 
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.
 
Bumping thread to report spectacular "success" that was worst ride ever

Alright. Less than one-half of the points awarded for one credit pull (BA card) got turned into economy plus seats that led to an "involuntary" upgrade to business (club world) for LHR-IAD. That's a net plus of about $12,000 for the two seats.

There's a long version and a short version of what came next. This is the short. :LOL:

Never having aspired to club world, I had not realized that 2 out of the 8 pods per row in business class on this particular BA plane are a double that basically turn into a very narrow, though 6 foot long, bed private from the adjoining pods and the aisle. One of our seats was in the double pod shared by an English man in his 60s who tensed when I sat down. (Gave my 15-yo daughter the adjoining single aisle pod.) Turns out that his wife was in the aisle pod on the other side of the double and I'm about to spend the night so to speak with her husband. While I am hardly a glamour puss I had managed to be wearing a rather dramatic long skirt and fresh linen blouse with my hair twisted up into a bandana.

For our particular double pod and adjoining singles what would have worked well for my daughter and I and our new "best friends" would for me and the husband to continue to share the double over dinner chatting with our loved ones through the windows then at bedtime for me to switch with the wife away from my daughter giving them "the bed."

This didn't happen. The wife promptly set about trying to find a new place to get me *out* of that pod. This - along with other switches being made by other passengers - led to a game rather like musical chairs. A rather impatient man I'd never seen showed up for my daughter's seat *now.* Sometimes flight attendants were involved, sometimes not. As a up-gradee I kept agreeing to whatever a passenger wanted. This approach alas did not always work well for what one passenger wanted could conflict with another.

My daughter and I ended up back together when a late-arriving passenger gave his seat to my DD (who sitting there with her stuffed animal sucking on a lollipop looked younger than her age). He seemed to be the only "white knight." The moves involved one passenger (English wife) making faces at the purser behind his back thru her pod window then slamming down the privacy screen - outright fibbing (alas again the English wife who *was* determined). Others were unnecessarily stubborn or sowed confusion by misspeaking.

Other than the fact my daughter got her long-expressed wish to ride in a pod, I'd have far rather kept our original economy plus seats back in the proverbial cattle car. Would have been more than happy with the extra legroom in plus.
 
The southwest companion pass thru credit cards is back on. You need both the personal card AND the business card. Million mile secrets has the blog post with links to the cards. Also, he has information about applying for business cards.
 
I have managed over the years to acquire and use some frequent flier miles but you guys are in a league above me. FF miles made the trip to Peru affordable for DH and me. We also scored a trip to Seattle with FF miles. Now I am sure Haha is not impressed, but Seattle was a big deal for us. I will be checking out the links in the previous posts to this thread.
 
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