Citibank wants tax returns for a credit card???

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills.
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Citibank wants tax returns for a credit card???

Post by michaeljc70 »

I decided I wanted the Citi double cash back rewards card since you get 2% back on every purchase. I have several other rewards cards, and have been partial to Amex Blue, but this seems like a better deal.

I have excellent credit (FICO around 810), 3% credit utilization, zero late payments, and a small mortgage (equal to around my annual salary).

I was shocked to get a letter from citi saying I needed to complete an IRS form 4506 to give them permission to access my 2014 tax return.

In 27 years of having credits cards, this has NEVER happened. I currently have Discover, Amex, and maybe 6 visa/mastercards.

I have 2 theories:
-They do not like that I have opened, multiple times, reward cards,get the bonus and then cancelled before the annual fee was due.
-They just want more info on you to cross sell other products. I already have at least one Citi credit card and have had many over the years.

I called Citi, and basically got the same response as the letter- if you want to be considered for the card, fill out the form.

Any one else seeing this and have any insight?

BTW...this card has no sign on bonus.
vtMaps
Posts: 1027
Joined: Tue Oct 14, 2008 12:05 pm
Location: central Vermont

Re: Citibank wants tax returns for a credit card???

Post by vtMaps »

michaeljc70 wrote:I already have at least one Citi credit card and have had many over the years.
I had a Citi Driver's Edge credit card which they discontinued and converted to a Thankless points card a few years ago. I used the thankless card for a couple of small purchases each year just to keep it from being closed.

A year or so ago I called them and asked them to convert it to a Double Cash card. They did the conversion... no hard pull and they didn't even change the acct number (but they did issue me a new card).

Maybe they will convert one of your other cards without asking to see your tax returns.

--vtMaps
Last edited by vtMaps on Fri Feb 26, 2016 8:16 pm, edited 1 time in total.
"Truly, whoever can make you believe absurdities can make you commit atrocities" --Voltaire, as translated by Norman Lewis Torrey
User avatar
prudent
Moderator
Posts: 9079
Joined: Fri May 20, 2011 2:50 pm

Re: Citibank wants tax returns for a credit card???

Post by prudent »

My feeling is that they want to verify the income stated on the application. I have seen a few reports over the last few years of Citi requesting a 4506-T. It likely will mean they will pull your credit a second time, after they receive the tax return from the IRS.
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Re: Citibank wants tax returns for a credit card???

Post by michaeljc70 »

prudent wrote:My feeling is that they want to verify the income stated on the application. I have seen a few reports over the last few years of Citi requesting a 4506-T. It likely will mean they will pull your credit a second time, after they receive the tax return from the IRS.
The letter does state that. However, as I understand it, multiple pulls within a 45 day period do not hurt your credit as it is considered shopping around. I am not clear that this would be considered another hard pull either anyway.

I was originally going to tell them to forget it...I have plenty of cards and plenty of issuers that will give me cards. However, after contemplating it, Citi is a huge issuer and if I don't do it now, they probably will ask for the same in the future. I have nothing to hide, so I did it.

If they really wanted to verify income quicker, they could have asked for a pay stub. After all, it is 2016 and they are pulling my 2014 tax return.
crit
Posts: 546
Joined: Mon Jan 05, 2015 11:54 am

Re: Citibank wants tax returns for a credit card???

Post by crit »

Eww.

I have that card, and they've been very tightfisted about credit limit. However, they did not ask for income verification. I would have probably provided a paystub if asked, but access to my tax records? [OT comment removed by admin LadyGeek] Wow. Not worth it.
User avatar
BlueShoe
Posts: 32
Joined: Fri Jan 22, 2016 4:55 pm

Re: Citibank wants tax returns for a credit card???

Post by BlueShoe »

Applied and received same card in January.
Like crit, no tax forms required
richardglm
Posts: 284
Joined: Sun Jan 04, 2015 8:42 pm

Re: Citibank wants tax returns for a credit card???

Post by richardglm »

I got this card two weeks ago. I received a targeted invite to apply and didn't need to give additional information. Even with a targeted invite, they gave me a very low credit limit.

My thinking is they know they are operating on a razor thin profit margin on this card. At 2% CB, they are not making as much on interchange fees, and the target audience for this card are not people who carry a balance. They can't afford too many defaults, hence the strict underwriting and low credit limits. Also, as the best offer on the market, they know people will put up with it.

I have been asked to give W-2's in the past from Capital One for income verification. Those were copies I mailed to them, not permission to get them from the IRS.
penumbra
Posts: 365
Joined: Thu Mar 29, 2007 2:42 am

Re: Citibank wants tax returns for a credit card???

Post by penumbra »

I've had 40 or so cards in the last 5 years. Never been asked for a tax return. I would not provide it unless I was down to my last card (figure of speech, only). It's by no means standard.
island
Posts: 1971
Joined: Tue Jul 23, 2013 1:45 pm

Re: Citibank wants tax returns for a credit card???

Post by island »

Just got that card. No problems. No request for tax returns.
inbox788
Posts: 8372
Joined: Thu Mar 15, 2012 5:24 pm

Re: Citibank wants tax returns for a credit card???

Post by inbox788 »

I would tell them to pound sand.

It was a card I was considering, but I went with Fidelity Visa 2% and got a high limit. No tax return needed. In fact, it was an instant approval.

IMO, the differences between the 2% cash back cards are minor. Citibank has 3% foreign transaction fee vs 1% at Fido and 0% at Capital One.

https://www.fidelity.com/cash-managemen ... ature-card

There was another card that I was comparing to that was similar in value, but I can't seem to recall or find it now. It might have been a Capital One card, but I can't seem to find a simple 2% type reward now.
User avatar
Toons
Posts: 14459
Joined: Fri Nov 21, 2008 9:20 am
Location: Hills of Tennessee

Re: Citibank wants tax returns for a credit card???

Post by Toons »

I would pass on any card that asked for my tax return :happy
"One does not accumulate but eliminate. It is not daily increase but daily decrease. The height of cultivation always runs to simplicity" –Bruce Lee
Grogs
Posts: 1173
Joined: Tue Mar 24, 2015 4:55 pm

Re: Citibank wants tax returns for a credit card???

Post by Grogs »

I would definitely decline, and inform them I'll be getting a card from a competitor who doesn't make such unreasonable requests.

Also, I wouldn't sweat hard pulls on your credit unless you're doing them all the time. I got that ding when I was buying a house, and my employer also ran a check at the same time. I think it lowered my score a whole 10 points for a couple of months. The month after I closed it actually jumped up 30 points. Since you're well above the 750/760 threshold, which pretty well qualifies you for anything, I don't think it would have any noticeable effect.
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Re: Citibank wants tax returns for a credit card???

Post by michaeljc70 »

richardglm wrote:I got this card two weeks ago. I received a targeted invite to apply and didn't need to give additional information. Even with a targeted invite, they gave me a very low credit limit.

My thinking is they know they are operating on a razor thin profit margin on this card. At 2% CB, they are not making as much on interchange fees, and the target audience for this card are not people who carry a balance. They can't afford too many defaults, hence the strict underwriting and low credit limits. Also, as the best offer on the market, they know people will put up with it.

I have been asked to give W-2's in the past from Capital One for income verification. Those were copies I mailed to them, not permission to get them from the IRS.
I think you are on to something. The cards with richer rewards are less profitable. Just because someone is going to not default doesn't mean the credit card company will make money off of it. In other words, just because you pay off your debts doesn't mean you are a good (profitable) customer.

My guess is that they have seen me open up and close several rewards cards (mostly for miles) which they lost money on. I don't have any Citi cards that I have used over the long term.

Another thing is, they always ask your income on these credit card applications...and have no way of verifying it really. I always wondered about that. I guess if you had a mortgage with them they would know, but otherwise, they are just taking your word for it and trusting your credit score
Last edited by michaeljc70 on Sat Feb 27, 2016 8:36 am, edited 1 time in total.
User avatar
segfault
Posts: 559
Joined: Thu Jun 21, 2007 4:51 pm

Re: Citibank wants tax returns for a credit card???

Post by segfault »

I got one a couple of months ago. Agree they are stingy with the credit limit. 14 months no interest, but the limit they gave me isn't high enough for me to put all my spending on the card for 14 months then pay it off. The underwriter I spoke to implied they wanted to see payment history on the account before making a significant increase in limit, so I may try again after a few months.
User avatar
Ged
Posts: 3944
Joined: Mon May 13, 2013 1:48 pm
Location: Roke

Re: Citibank wants tax returns for a credit card???

Post by Ged »

I would not supply a company with my tax returns. Once they have it, it's quite possible they would sell that information to their 'business partners'.
User avatar
goingup
Posts: 4901
Joined: Tue Jan 26, 2010 12:02 pm

Re: Citibank wants tax returns for a credit card???

Post by goingup »

michaeljc70 wrote:I was shocked to get a letter from citi saying I needed to complete an IRS form 4506 to give them permission to access my 2014 tax return.
I think your hunch is correct. This is their way of saying they really don't want your business.
lovejoypeace
Posts: 212
Joined: Mon Jan 20, 2014 2:24 pm

Re: Citibank wants tax returns for a credit card???

Post by lovejoypeace »

A few months ago I applied for a Citibank card (don't remember which one) and got a letter with a long list of items they wanted me to send in - tax returns, check stubs, etc. I called them because I have a high credit score, no mortgage, and no other debt for that matter. I have never been asked to supply all that information before. Basically they told me to either send in the info or they would not issue me a card. Guess what?? There's other credit cards out there just waiting for me!
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Re: Citibank wants tax returns for a credit card???

Post by michaeljc70 »

aprilcpa wrote:A few months ago I applied for a Citibank card (don't remember which one) and got a letter with a long list of items they wanted me to send in - tax returns, check stubs, etc. I called them because I have a high credit score, no mortgage, and no other debt for that matter. I have never been asked to supply all that information before. Basically they told me to either send in the info or they would not issue me a card. Guess what?? There's other credit cards out there just waiting for me!
Sure, but there aren't many that pay 2% reward in cash. The Fidelity card requires a Fidelity account.

Citi is also a huge issuer of cards and I figured if income was truly an issue, it could be on any future applications and this would resolve it once and for all.

Now, if after providing this they decline me, I will be pissed and never do business with Citi again.

I haven't had a car loan for 20 years, but even for that I didn't need to provide a tax return.
User avatar
munemaker
Posts: 4338
Joined: Sat Jan 18, 2014 5:14 pm

Re: Citibank wants tax returns for a credit card???

Post by munemaker »

Could they have a reason to question your stated income?

Are you perhaps self-employed or retired? OR some other unusual situation?
Gill
Posts: 8221
Joined: Sun Mar 04, 2007 7:38 pm
Location: Florida

Re: Citibank wants tax returns for a credit card???

Post by Gill »

inbox788 wrote:I would tell them to pound sand.
Well said and I totally agree. I just got this card also through a targeted mailing. No need to show proof of anything but, like others, was disappointed at credit limit of $9,600, not enough to charge a typical cruise booking.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal
sport
Posts: 12084
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: Citibank wants tax returns for a credit card???

Post by sport »

Regarding income verification: When credit card companies ask for annual income, do they mean taxable income? My IRA accounts generate income, it is available for spending if I wish, but it will not show up on a tax return. If they want taxable income, they should say so. What annual income should be included in an answer to that question?
Last edited by sport on Sat Feb 27, 2016 11:57 am, edited 1 time in total.
Laren
Posts: 80
Joined: Sun Nov 18, 2007 11:06 pm

Re: Citibank wants tax returns for a credit card???

Post by Laren »

I've got the Citibank DoubleCash card, and they did start me out with a fairly low limit. After about 6 months, I requested an increase online and they granted it, no problem. At no point did they ask me for tax returns or W2s or paystubs or any documentation like that - just as well because I would not have provided them. I don't carry a balance, so the only money they're making off me is on transactions. I did get the card over a year ago when it was still new on the market though - maybe the card has been successful enough that they're being more selective now?
vtMaps
Posts: 1027
Joined: Tue Oct 14, 2008 12:05 pm
Location: central Vermont

Re: Citibank wants tax returns for a credit card???

Post by vtMaps »

Laren wrote:I don't carry a balance, so the only money they're making off me is on transactions.
They know a lot about your spending habits and I suspect that they sell that info. --vtMaps
"Truly, whoever can make you believe absurdities can make you commit atrocities" --Voltaire, as translated by Norman Lewis Torrey
Laren
Posts: 80
Joined: Sun Nov 18, 2007 11:06 pm

Re: Citibank wants tax returns for a credit card???

Post by Laren »

vtMaps wrote:
Laren wrote:I don't carry a balance, so the only money they're making off me is on transactions.
They know a lot about your spending habits and I suspect that they sell that info. --vtMaps
Good point, they're likely data-mining the heck out of me. I should have said that they're not getting any interest payments from me. Hmm, I didn't have a Citibank card prior to this one - I wonder if the opportunity to data-mine someone new factors into their accept-or-request-tax-return algorithm??
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Re: Citibank wants tax returns for a credit card???

Post by michaeljc70 »

munemaker wrote:Could they have a reason to question your stated income?

Are you perhaps self-employed or retired? OR some other unusual situation?
I don't think so. They will see on the tax return it is what I put on the application.

Another thing is, I applied for the credit card myself. My tax return is joint. The tax return doesn't break out income by person. I know they typically ask for household income on a credit card application, but I don't think my spouse would be liable since they are not on the account.
inbox788
Posts: 8372
Joined: Thu Mar 15, 2012 5:24 pm

Re: Citibank wants tax returns for a credit card???

Post by inbox788 »

michaeljc70 wrote:Sure, but there aren't many that pay 2% reward in cash. The Fidelity card requires a Fidelity account.
Yes, but the Cash Management account is free AFAIK, there are no catches. I don't plan to keep anything there other than using it as the outbound transfer for the cash rewards.

The 2% Capital One card I might have looked at was the Business Spark, which is a business card and carries an annual fee.
https://www.capitalone.com/credit-cards ... park-cash/
Raladic
Posts: 196
Joined: Fri Jan 03, 2014 3:56 pm

Re: Citibank wants tax returns for a credit card???

Post by Raladic »

michaeljc70 wrote:However, as I understand it, multiple pulls within a 45 day period do not hurt your credit as it is considered shopping around. I am not clear that this would be considered another hard pull either anyway.
I'd be careful about that, there is shopping around for Mortgages, and the inquiries will list that purpose, but I haven't heard of shopping for Credit Cards, so I do think that another hard pull will affect your credit score in this case.
Mudpuppy
Posts: 7409
Joined: Sat Aug 27, 2011 2:26 am
Location: Sunny California

Re: Citibank wants tax returns for a credit card???

Post by Mudpuppy »

I know Citi has been rather stingy with the credit limit on this card. As for this request, something must have set off their algorithm. It seems to be a very finicky algorithm, so it's hard to say what set it off. And they are asking for 2014 tax returns because that is the latest tax year that is guaranteed to be filed right now. People have until October to file 2015 tax returns.

So it makes sense that they're asking for 2014 returns. It's just odd that they're asking for returns in the first place.

I do see a few threads on myFICO forums about them asking the same of others though:
http://ficoforums.myfico.com/t5/Credit- ... -p/3742717
http://ficoforums.myfico.com/t5/Credit- ... -p/4331015
http://ficoforums.myfico.com/t5/Credit- ... -p/3683121

I'd be a little more concerned by how low of a limit the first two myFICO threads reported, particularly after going to the hassle of providing tax returns and/or W2 forms.
richardglm
Posts: 284
Joined: Sun Jan 04, 2015 8:42 pm

Re: Citibank wants tax returns for a credit card???

Post by richardglm »

Mastercard bank interchange fees for credit cards are at most $0.10 plus 1.77% right now (excluding corporate cards and "world elite" cards)

Each card present transaction above $43.48 means that Citi is literally paying more in cash back than they receive from the merchant. Card not present transactions have interchange fees above 2%, but also have higher fraud rates.

No wonder they don't want to give extremely high credit limits. Anyone who uses the card exclusively in stores for large transactions costs Citi money. And card not present transactions when counting fraud protection, auto coverage, extended warranty, and all the other card features they provide, must be very little profit margin remaining.
criticalmass
Posts: 2839
Joined: Wed Feb 12, 2014 9:58 pm

Re: Citibank wants tax returns for a credit card???

Post by criticalmass »

richardglm wrote:Mastercard bank interchange fees for credit cards are at most $0.10 plus 1.77% right now (excluding corporate cards and "world elite" cards)
The actual interchange fee can vary quite a bit, by card type, merchant category code, and country of issue. Also, debit Mastercards generally have lower interchange fees than credit Mastercards.
Dimitri
Posts: 427
Joined: Sun May 31, 2015 10:51 pm

Re: Citibank wants tax returns for a credit card???

Post by Dimitri »

I have 3 Citibank cards. 2% Cash Back is the most recent. No tax returns ever requested. That said, I've had a checking account with Citibank since 2006. Sometimes it has been six figures although these days it isn't due to interest rate offered. Maybe Citibank wanted a more substantial confirmation of your creditworthiness?
Let's never come here again because it would never be as much fun.
User avatar
celia
Posts: 16762
Joined: Sun Mar 09, 2008 6:32 am
Location: SoCal

Re: Citibank wants tax returns for a credit card???

Post by celia »

We're retired, not collecting SS yet (except for 1/2 spousal). We both called Citi a few months ago to get their 2% cash back cards and were approved while on the phone. They asked for our monthly income and we gave our pension income. No problem. We got the cards a week or two later.

The credit limit was on the low side but we got these cards for medical expenses only, so we could track those expenses separate from others. When we need a bigger limit, we'll just ask for it.
A dollar in Roth is worth more than a dollar in a taxable account. A dollar in taxable is worth more than a dollar in a tax-deferred account.
Leesbro63
Posts: 10581
Joined: Mon Nov 08, 2010 3:36 pm

Re: Citibank wants tax returns for a credit card???

Post by Leesbro63 »

Gill wrote:
inbox788 wrote:I would tell them to pound sand.
Well said and I totally agree. I just got this card also through a targeted mailing. No need to show proof of anything but, like others, was disappointed at credit limit of $9,600, not enough to charge a typical cruise booking.
Gill
Can't you pay for cruises in pieces at different times? Just pay the card immediately after each piece is charged. You'll get the full 2% rebate of your total cruise cost that way.
takeshi
Posts: 1175
Joined: Thu Oct 03, 2013 10:02 pm

Re: Citibank wants tax returns for a credit card???

Post by takeshi »

michaeljc70 wrote:I was shocked to get a letter from citi saying I needed to complete an IRS form 4506 to give them permission to access my 2014 tax return.

In 27 years of having credits cards, this has NEVER happened. I currently have Discover, Amex, and maybe 6 visa/mastercards.
Don't rely solely on your experience. It can certainly happen. AmEx, for example, uses the 4506-T for income verification and during financial reviews.
michaeljc70 wrote:Any one else seeing this and have any insight?
Haven't run into it but Citi doesn't have any cards that interest me. It's up to you to determine if you want to follow through with it. I've run into the 4506-T with AmEx and it wasn't a big deal IMO. However, there are plenty that view them as too intrusive.
michaeljc70 wrote:The letter does state that. However, as I understand it, multiple pulls within a 45 day period do not hurt your credit as it is considered shopping around. I am not clear that this would be considered another hard pull either anyway.
AFAIK that only applies to properly coded pulls for things like mortgages and auto loans. I don't think it applies to credit cards.
sport wrote:What annual income should be included in an answer to that question?
Depends on what they ask for on the app and what the creditor will use for income verification. Creditors are not all identical. If in doubt, call and ask that specific creditor. Don't rely on broad, sweeping generalizations.
testing321
Posts: 295
Joined: Sat Oct 25, 2014 6:46 pm

Re: Citibank wants tax returns for a credit card???

Post by testing321 »

richardglm wrote:Mastercard bank interchange fees for credit cards are at most $0.10 plus 1.77% right now (excluding corporate cards and "world elite" cards)
Once I was buying a new car and started writing a check for the full amount and the dealer balked at taking a check for a large amount. I then took out a credit card and said he could charge it instead. He took the check.
buckstar
Posts: 231
Joined: Wed Jul 06, 2011 9:38 am

Re: Citibank wants tax returns for a credit card???

Post by buckstar »

Interesting....I applied for and received this card 2 months ago, then 2 weeks ago asked for a credit limit increase to 35k, which was granted without a tax return request. I've never had an account with Citibank prior to this.
2tall4economy
Posts: 739
Joined: Thu Jan 08, 2015 6:55 am
Location: Global

Re: Citibank wants tax returns for a credit card???

Post by 2tall4economy »

I've had somewhere around 70 cards in the past few years when I was traveling a lot, including a short period where I had 45 at once. I've been asked for the tax form on various occasions but it's not too common of a request comparatively, and I didn't see any rhyme or reason from one request to another.

Anyway, I never saw it as a big deal. My car lender has this info as does my mortgagor and my bank knows too. I couldn't really care less if another financial institution has data on me (the reality is they do anyway). My only gripe was getting my wife to sign every time was a hassle.

In any event, the capital one cash is a better card than the citi anyway. Get that one instead.
You can do anything you want in life. The rub is that there are consequences.
aced411
Posts: 7
Joined: Fri Feb 26, 2016 9:43 am

Re: Citibank wants tax returns for a credit card???

Post by aced411 »

I didn't have any issue getting a double cash card with a cushy limit. I don't know what exactly they require but I read this particular card is geared toward super low risk individuals. At any rate there are some cards pretty darn close with 1.5% cash back.

I have to admit it's a pretty sweet card. It might be worth the hassle of sending those returns.
inbox788
Posts: 8372
Joined: Thu Mar 15, 2012 5:24 pm

Re: Citibank wants tax returns for a credit card???

Post by inbox788 »

aced411 wrote:I have to admit it's a pretty sweet card. It might be worth the hassle of sending those returns.
Besides the hassle free 2%, what is so great about this card? It's a MC so can't use it at Costco. It has a 3% foreign transaction fee. They do give you a pass on one late fee, but likely charge you interest. Already have the 2% Fidelity Visa, so I'm looking for a reason to apply for one more card.
ChiefIlliniwek
Posts: 94
Joined: Thu Jan 08, 2015 11:40 am

Re: Citibank wants tax returns for a credit card???

Post by ChiefIlliniwek »

inbox788 wrote:
aced411 wrote:I have to admit it's a pretty sweet card. It might be worth the hassle of sending those returns.
Besides the hassle free 2%, what is so great about this card? It's a MC so can't use it at Costco. It has a 3% foreign transaction fee. They do give you a pass on one late fee, but likely charge you interest. Already have the 2% Fidelity Visa, so I'm looking for a reason to apply for one more card.
I have both cards and I don't see any difference between the two. In fact I think the Fidelity card is a little better since you get 2% on purchases and not 1% and 1% on paying. Because of this and the fact that I will be able to use it at Costco I am moving most of my spending over to the Fidelity Visa.
inbox788
Posts: 8372
Joined: Thu Mar 15, 2012 5:24 pm

Re: Citibank wants tax returns for a credit card???

Post by inbox788 »

ChiefIlliniwek wrote:I have both cards and I don't see any difference between the two. In fact I think the Fidelity card is a little better since you get 2% on purchases and not 1% and 1% on paying. Because of this and the fact that I will be able to use it at Costco I am moving most of my spending over to the Fidelity Visa.
I don't see the distinction between purchasing and paying other than one happens about a month after another, which is an insignificant difference to me. I went with the fidelity one because I wanted to check out their other services, but they were underwhelming, so I'm only keeping the credit card for now. I also have a relationship with Citibank, so it wouldn't have been difficult adding another card, but don't see the point of collecting credit cards I won't use. I already have plenty that I don't want to cancel because of their long record that are sitting in the drawer, some that I never activated. Has anyone ever had a card cancelled because it wasn't activated? I was once able to activate a card about 2 years after I received it.
Frome
Posts: 26
Joined: Fri Jan 29, 2016 11:19 am

Re: Citibank wants tax returns for a credit card???

Post by Frome »

I wonder how Citi would use the tax returns to verify income. When I'm asked for income on a credit card application, I give my total income before any tax deferrals like FSA or 401k. But your tax return doesn't show those deferrals since Line 7 of the 1040 already has those amounts deducted. This could make a couple's income look like its $41k lower than it is. Some W2s now show those deferrals, but it doesn't look like Citi was asking for W2s.
aced411
Posts: 7
Joined: Fri Feb 26, 2016 9:43 am

Re: Citibank wants tax returns for a credit card???

Post by aced411 »

ChiefIlliniwek wrote:
inbox788 wrote:
aced411 wrote:I have to admit it's a pretty sweet card. It might be worth the hassle of sending those returns.
Besides the hassle free 2%, what is so great about this card? It's a MC so can't use it at Costco. It has a 3% foreign transaction fee. They do give you a pass on one late fee, but likely charge you interest. Already have the 2% Fidelity Visa, so I'm looking for a reason to apply for one more card.
I have both cards and I don't see any difference between the two. In fact I think the Fidelity card is a little better since you get 2% on purchases and not 1% and 1% on paying. Because of this and the fact that I will be able to use it at Costco I am moving most of my spending over to the Fidelity Visa.
I didn't realize the Fidelity card gave you 2% in actual cash. I thought you had to use put it towards one of their managed investment accounts. In that case you're right, Fidelity sounds better. As far as CitiBank being MasterCard, I have a Capitol One and Credit Union Visa as backups, but we don't shop at Costco anymore so I could care less. There's like 3 places in the US that take Visa and not MasterCard.
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Re: Citibank wants tax returns for a credit card???

Post by michaeljc70 »

Just an update on this whole thing. I sent in the form for Citi to get my tax returns. I waited about 5 weeks and heard nothing. Then I went to their website and entered the application # for status and it said to call. I called and was told it that was a different area and they knew nothing, but would email them.

A couple of hours later, I get an email saying it was approved.

So, the bottom line is they made me jump throw a lot of hoops, but I got the card. I am not sure it was worth it for this particular card, but I figured Citi would never give me a card without doing this so I'd get it over with.

The other option was never using Citi, which was appealing, but I love getting those free miles. :D
littlebird
Posts: 1860
Joined: Sat Apr 10, 2010 6:05 pm
Location: Valley of the Sun, AZ

Re: Citibank wants tax returns for a credit card???

Post by littlebird »

sport wrote:Regarding income verification: When credit card companies ask for annual income, do they mean taxable income? My IRA accounts generate income, it is available for spending if I wish, but it will not show up on a tax return. If they want taxable income, they should say so. What annual income should be included in an answer to that question?
I give a figure which includes actual S.S. and pension plus the imputed income -at 7.5%- of my invested assets.
core4portfolio
Posts: 666
Joined: Thu Dec 26, 2013 1:12 pm

Re: Citibank wants tax returns for a credit card???

Post by core4portfolio »

michaeljc70 wrote:I decided I wanted the Citi double cash back rewards card since you get 2% back on every purchase. I have several other rewards cards, and have been partial to Amex Blue, but this seems like a better deal.

I have excellent credit (FICO around 810), 3% credit utilization, zero late payments, and a small mortgage (equal to around my annual salary).

I was shocked to get a letter from citi saying I needed to complete an IRS form 4506 to give them permission to access my 2014 tax return.

In 27 years of having credits cards, this has NEVER happened. I currently have Discover, Amex, and maybe 6 visa/mastercards.

I have 2 theories:
-They do not like that I have opened, multiple times, reward cards,get the bonus and then cancelled before the annual fee was due.
-They just want more info on you to cross sell other products. I already have at least one Citi credit card and have had many over the years.

I called Citi, and basically got the same response as the letter- if you want to be considered for the card, fill out the form.

Any one else seeing this and have any insight?

BTW...this card has no sign on bonus.

They asked the same thing for me when i applied for thank you premier and i said NO and cancelled the application.
After 3 months, i reapplied online and got instant approval
Allocation : 80/20 (90% TSM, 10% on ARKK,XBI,XLK/individual stocks and 20% TBM) | | Need to learn fishing sooner
DoubleClick
Posts: 598
Joined: Mon Oct 18, 2010 1:12 am

Re: Citibank wants tax returns for a credit card???

Post by DoubleClick »

If people start providing copies of tax returns, this will slowly become the norm for applying for credit cards. I sincerely hope people don't do so.
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Re: Citibank wants tax returns for a credit card???

Post by michaeljc70 »

DoubleClick wrote:If people start providing copies of tax returns, this will slowly become the norm for applying for credit cards. I sincerely hope people don't do so.
I doubt it will. It is slow and costs them money.

This was just an attempt to deter a customer they deemed unprofitable.
Topic Author
michaeljc70
Posts: 10837
Joined: Thu Oct 15, 2015 3:53 pm

Re: Citibank wants tax returns for a credit card???

Post by michaeljc70 »

littlebird wrote:
sport wrote:Regarding income verification: When credit card companies ask for annual income, do they mean taxable income? My IRA accounts generate income, it is available for spending if I wish, but it will not show up on a tax return. If they want taxable income, they should say so. What annual income should be included in an answer to that question?
I give a figure which includes actual S.S. and pension plus the imputed income -at 7.5%- of my invested assets.
Obviously, IRA income would not appear on a tax return. Citi would probably say that you cannot (at least without penalty) withdraw that money so it isn't available to pay your bills. If you withdraw money from a traditional IRA because you are eligible to do so, it is generally taxable and would show on your tax return.
sport
Posts: 12084
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: Citibank wants tax returns for a credit card???

Post by sport »

michaeljc70 wrote: Citi would probably say that you cannot (at least without penalty) withdraw that money so it isn't available to pay your bills.
I am older than 59.5. There is no penalty. I also have a Roth IRA. The money is certainly available any time I want it.
michaeljc70 wrote: If you withdraw money from a traditional IRA because you are eligible to do so, it is generally taxable and would show on your tax return.
If I withdrew the money (past tense) it would show on my tax return. That does not say anything about whether or not I will withdraw money in the future. Unlike a salary, the timing of IRA withdrawals is discretionary (other than an RMD). If the money is there, and if the earnings are there, I have the resources to pay obligations. Whether or not that withdrawal is taxable is of no consequence.
Post Reply