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That is why some Citibank customers have been receiving 1099-MISC statements. They signed up for a bank account and as part of the marketing to get new customers to sign up they were given 25,000 to 30,000 airline miles. Since these miles are considered a gift and not a reward, they are deemed as taxable income.
The organization uses the donated miles to help someone in need to travel. Keep in mind that you will not get the tax deduction if you are using your own miles. If you purchase them for the sole purpose of donation, you can use it as a write-off.Rewards points are only tax deductible if the points were purchased.he organization uses the donated miles to help someone in need to travel. Keep in mind that you will not get the tax deduction if you are using your own miles. If you purchase them for the sole purpose of donation, you can use it as a write-off. Rewards points are only tax deductible if the points were purchased.