We recently shared the American Express Refer a Friend Enhancements. With these changes, your friend can now sign up for any American Express card using your link, and you’ll still earn the referral bonus. In the past, in order to receive a referral bonus, you’d have to have the same product that you wanted to refer.
However, we know learned that American Express has been issuing 1099’s on referral bonuses for those have referred friends or family last year. If you’ve received a 1099 it will be coming from the American Express National Bank.
To clarify, it’s only on those bonuses earned if you referred someone. If you signed up and received a new cardholder sign-up bonus, you’re not being issued a 1099.
We’re told that they’re valuing Membership Rewards, Delta SkyMiles, Starwood Preferred Guest Points at 1 cent per point, whereas Hilton Honors are only .67 per point.
Chase did this in the past, but then they reversed the 1099’s, so here’s to hoping that American Express follows the same path.
Be sure to consult your tax advisor on how you should handle this if you receive a 1099 from American Express.
Hat Tip: Doctor of Credit