Frequent traveler points are not typically handled as a taxable event. Did you receive a 1099 or similar document? If not, don't worry about it. If yes, hand the document over to your accountant. It may be possible to contest or dismiss the reported valuation depending on the situation. Although the IRS has generally ignored points usage at the consumer level they may decide to change their mind at any time.
One addendum to my previous post. Certain types of taxes are collected when redeeming points for free purchases, but Amtrak sales are currently exempt from such taxes.
I think the main issue is that points values can vary wildly depending on specific usage and there is no obvious method in place for tracking the value that is actually realized.Fortunately for now IRS does not have the spare resources to change their mind.
