Check out this month's top recommended cards WITH NO ANNUAL FEES for US military.
I recommend Personal Capital. It's my favorite free net worth tracking tool.

Check out my review of Lending Club if you’re not familiar with it!

I AM NOT A TAX OR FINANCIAL ADVISOR. THIS IS NOT TAX ADVICE. THIS IS BASED ON MY EXPERIENCE AND UNDERSTANDING OF US TAX LAW (WHICH IS VERY LOW) AND LENDING CLUB POLICIES.

My understanding is that Lending Club profits are taxable. However in the 2011 tax year, I didn’t receive any tax documents from Lending Club. Many other people probably experienced this as well. What’s going on? Here’s the answer:

For all Lending Club notes issued on or after 14 October 2008, Lending Club will issue a 1099-OID IRS tax form to you IF:

Interest Receive + Late Fees – Servicing Fees => $10

But they will only issue a 1099-OID PER NOTE. So if you have $25 invested in 1000 notes, chances are any individual note WILL NOT generate $10 or more in interest and late fees for a single tax year. However, you probably will have much more than $10 in interest payments in your total account for the tax year. Therefore, you won’t receive a 1099-OID from Lending Club, only a year end statement. The year end statement will list the total interest and late fees you received, so you can use that to fill out your tax return.

The way I listed it on my 1040 last year (2011 tax year) was under the 1099 section, where my bank account interest went. I simply created a line item for Lending Club and then listed the total interest I received. That should be enough to cover yourself if you were ever audited.

Lending Club’s official policy statement on taxes is as follows:

Interest and other payments received from your Lending Club Notes may be taxable. Lending Club does not provide tax advice and recommends that you consult your financial or tax advisor.

And here’s an entire Lending Club tax information section if you’d like to know more. Jonathan at My Money Blog had similar ideas earlier this year.

Again, this is just based on my experience. Check with a CPA, CFA, or someone who actually understands US tax law and the special situation Lending Club creates. Don’t rely on blogs for your tax advice!

Do I Have to Pay Taxes on my Lending Club Earnings?

2 Ultra-Lux Chase and AMEX Cards With NO Annual Fees for Military

“The editorial content on this page is not provided by any of the companies mentioned, and has not been reviewed, approved or otherwise endorsed by any of these entities. Opinions expressed here are author’s alone.”
Military SCRA MLA AMEX Platinum

Active duty US military servicemembers (and spouses!) can get the best travel rewards cards with NO ANNUAL FEES.

The American Express Platinum (click here) and Chase Sapphire Reserve (click here) cards are the two best travel cards in the world with some unbelievable benefits.

The AMEX Platinum Card Benefits for Military Include:

  • $550 Annual Fee WAIVED for US Military (and spouses)!
  • 60,000 Membership Rewards Points after $5000 spend in first 3 months after opening
  • $200 credit for Uber rides (or Uber Eats!) annually
  • $200 airline fee credit
  • Centurion Lounge and Priority Pass Airport Lounge Access
  • NO foreign transaction fees

The Chase Sapphire Reserve Card Benefits for Military:

Chase Sapphire Reserve bonusWhat are you waiting for? You can get both of these luxury cards today and pay no annual fees. It's free money (travel credits, Uber credits, airport lounge access) sitting on the table, waiting for you to take it.

Click here to learn more about the AMEX Platinum. Click here to learn more about the Chase Sapphire Reserve.

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“Responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.”

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