pk
Level 15
Level 15

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@KoushikD , I am missing something here.

Generally points  are not cash or illiquid and  mostly not taxable.  My position on these is that these r=are not transferrable but can be used to reduce your personal expense  ( when purchasing something ).   Thus not taxable income.

The bank , giving you a credit in your account  for referring a client, is transferrable amount -- it is cash and thus  taxable income, whether a 1099- INT is issued or not .  Credit Unions often call this  dividend.  IRS calls all these  as interest.  So report as interest -- ordinary income.

 But yea if you  get a 1099-MISC, you have to recognize the income  ( because this is  an expense  on the  entity side ).

Does this make sense  -- or am I in the left field ?