These are my top recommended credit cards for this month. Some have $450-550 annual fees waived exclusively for US military personnel.
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.
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.
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!
AMEX Platinum With NO Annual Fees for US Military
Military servicemembers and spouses can get the American Express Platinum with NO annual fees. Pick up your military annual fee waived card here!
The AMEX Platinum offers:
- $550 Annual Fee WAIVED for US Military (and spouses)!
- 60,000 Membership Rewards Points welcome offer
- $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
These benefits make it my top recommend card.
If you already have an AMEX Platinum card, check out the other AMEX cards, Chase credit cards, and this month's top recommended credit card bonuses, most with no annual fees for US military personnel.