Redeemed Over $600 In Tesla Referral Points? There Are Some Tax Implications You Should Know

EV giant Tesla Inc TSLA has reportedly started warning its customers of taxation on redeeming referral points for more than $600 worth of items.

What happened: As per a notification on Tesla’s mobile app, flagged by Tesla users on X, Tesla has started providing customers with a form 1099 to support their tax filing in case they have redeemed over $600 in program awards and payouts in a year under its referral program.

“The IRS requires collection of W-9 information to track income sources of more than $600,” the company said.

Why It Matters: Under its referral program, Tesla provides credits to Tesla owners who recommend friends or family to order a Tesla product or take their first referred demo drive.

These credits can then be redeemed for benefits in the Tesla app. They cannot, however, be used to purchase merchandise or accessories on Tesla’s online store.

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