Focus Group "points"

[veritas44]

I've been trying to get an answer from SAGO/FocusGroup.com for months now but to no avail so I thought I'd check here.

My husband did a focus group with SAGO last year and accumulated around $900 worth of points but didn't redeem his points until February 2024. 

He had to fill out a W9 during one of his visits to the office but we never received a 1099-Misc. 

We do plan on reporting the income even if we don't receive a 1099, but the question is—will we have to report his rewards on the tax return for 2023 or the one for 2024 since he didn't claim his points until 2024 (and Virtual Reward Center also asked us for his SSN at the time of redemption of his last batch, which pushed him over the $600 threshold)? 

I just want to avoid having to pay twice for the same amount (2023 and 2024) or have to pay a penalty for some procedural hiccups on their part. 

Many thanks.

[DaveF1006]

Since he received his points in 2024, you will report this on your 2024 return.

[veritas44]

Duplicate post

[PaulaM · Accepted solution]

If all of $900 in points were redeemed for cash in 2024, then that is the tax year to report the income.  

[veritas44]

He received the points in 2023, but redeemed (i.e. he converted the points into gift cards) them in 2024.

I was all ready to report these in 2023 but the fact that the Reward Center asked his SSN when he converted the last batch (that pushed him past the $600 threshold; he was not asked for a SSN for the first batch) makes me think they'll also issue a 1099 in 2024? Does my concern make sense?

[veritas44]

Thank you, so we don't get taxed based on when the points are credited to the account, but rather on when the points are redeemed for cash/gcs, etc. 

[DawnC]

Correct.   Report the income on next year's return.