Redeemed Over $600 In Tesla Referral Points? There Are Some Tax Implications You Should Know
Portfolio Pulse from Anan Ashraf
Tesla Inc (NASDAQ:TSLA) has begun informing customers that redeeming referral points over $600 will have tax implications. Customers will receive a form 1099 for tax filing if they redeem awards and payouts exceeding this amount in a year. This is in compliance with IRS requirements to track income sources over $600. Tesla's referral program offers credits for referring new customers, which can be redeemed for benefits but not for merchandise or accessories in the online store.

January 03, 2024 | 11:54 am
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Tesla Inc has notified customers that redeeming referral points valued over $600 is subject to taxation, and they will be provided with a form 1099 for tax purposes. This may affect customer participation in the referral program.
While the news about tax implications for Tesla's referral program could influence customer behavior, it is unlikely to have a significant short-term impact on TSLA's stock price. The referral program is a small part of Tesla's overall business model, and the tax implications are a standard practice for income sources over $600, as required by the IRS.
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