The points can even be used to pay for processing and service fees, as well as taxes associated with the cost of the trip. (lowestrates.ca)
You are responsible for any applicable federal, state, or local taxes associated with receiving the bonus offer; consult your tax advisor to determine applicable tax consequences. (splashfinancial.com)
This way you will not be paying the higher rates of tax associated with breaking the lifetime limit, but also get maximum contributions into your various schemes. (money.stackexchange.com)