Faced with the threat of losing their frequent flyer miles, consumers can still earn a tax deduction on their loss this year. As of Dec. 31, American and United Airlines will wipe out miles that have been held for more than three years, affecting nearly 60 percent of all frequent flyers. Beginning in 1998, Northwest will now also make frequent flyer miles expire three years after the date they were earned.
Experts recommend that consumers cash in on their miles now.
If they don't have enough to claim a reward, taxpayers should consider donating their miles to a charity and earning a tax deduction. Most airlines now offer a number of charities where consumers can donate their expiring miles.