Strange! Capital One Includes Global Entry Credits on 1099s

Capital One Includes Global Entry Credits on 1099s

If you have any Capital One cards and especially if you have received any referrals during 2022, then you might have received a Form 1099 for those bonuses.

But the total reported on the form might be throwing you off. And the reason is probably the TSA Pre/Global Entry statement credit which is being considered taxable by Capital One. I saw this first reported by MilesTalk and then View from the Wing also got confirmation from Capital One that this is actually the case. 

So if you had two $250 referrals for example, then the extra $100 statement credit would put you over $600 and would trigger a Form 1099. Even the Venture X card’s $300 travel credits might be reported. If you have earned miles, then it seems that Capital One is valuing at $0.010029 each.

This is a strange decision from Capital One, and different from most other financial institutions. Statement credits are normally not reported as income as they are a rebate for making a purchase. And just because Capital One sends you a 1099 for a certain amount, it doesn’t mean that it is right and it is all taxable.

You can try reaching out to Capital One and ask them to correct it. But it’s probably easier to just enter the amount that was reported and then input an adjustment for the amount of the TSA Pre/Global Entry statement credit or the travel credit. And remember that even if you don’t get a Form 1099, you’re still required to report all your income.

You should always consult a with a tax professional before making a decision on how to proceed.

Let me know if you have received a 1099 from Capital One with an amount that you didn’t expect.

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