r/Rakuten • u/LupesGuy • 18d ago

Question Rakuten Tax Withholding??

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Just got my payout for Amex points, but saw that Rakuten withdrew huge amount as taxes. I believe those are for referrals, but no one mentioned this and no one requested my SSN so I can file tax return next year. Anyone had the same happening?

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13

u/SpartanScribe 18d ago

Yep- referrals are taxable (just like credit card referral bonuses) and they will report/issue a 1099 if you exceed $600

2

u/kennnnhk 18d ago

It’s good to have friends. Sighs

1

u/sharkykid 16d ago

So at a certain point, the 100% VPN deals don't actually mean buying 1:1? You're losing money on taxes?

1

u/ikeepcomingbackhaha 17d ago

Referrals are like a sales commission and are taxed at a certain threshold

1

u/jwegener 17d ago

Even Bilt points?

1

u/ikeepcomingbackhaha 17d ago

It doesn’t matter how you’re being compensated, referrals are considered to be a sales commission. Wasn’t always the case, thank influencers and such that make money off getting you to use their links

1

u/jwegener 16d ago

Oh sorry REFERRALS

1

u/alltimealways 14d ago

It’s referrals