The Tax Court has held that the value of an airline ticket received in the redemption of “thank you” award points from a bank must be included in gross income.

In the case of Shankar v. Commissioner, 143 T.C. No. 5, the taxpayer, Parimal Shankar, received 50,000 thank you points from Citibank in 2009. Citibank reported to Shankar and to the IRS on a 2009 Form 1099-MISC, Miscellaneous Income, “other income” of $668. Shankar did not report the income on his Form 1040.

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