Rewards card


Old 01-23-20, 10:24 AM
Thread Starter
Join Date: Mar 2007
Posts: 1,559
Received 24 Votes on 23 Posts
Rewards card

We use our cash rewards credit cards for almost all of our purchases. Are the cash rewards taxable income?
Sponsored Links
Old 01-23-20, 11:24 AM
Shadeladie's Avatar
Super Moderator
Join Date: Jan 2005
Location: PA - USA
Posts: 4,419
Received 69 Votes on 55 Posts
Can't recall seeing them listed on the tax statement I get from the bank and didn't get anything from the credit card company. Might depend on how many rewards you get tho. I'm thinking if you get to the thousand $$ rewards, maybe then.
Old 01-23-20, 12:19 PM
Group Moderator
Join Date: Mar 2003
Location: NC, USA
Posts: 21,612
Received 318 Votes on 292 Posts
Do a search for "are cash rewards taxable" and you will find a lot of information. The short answer is... it depends. Did you receive a 1099 from your bank for the cash rewards?
Old 01-23-20, 04:27 PM
Join Date: Jan 2015
Location: USA
Posts: 624
Received 16 Votes on 15 Posts
Simply stated, taxable income is income earned by the taxpayer. Thus, income must be earned compared to a gift, for example. So, regarding your question, cash back rewards are a return of your money to you and since you're only getting back your own cash it isn't taxable income. Compare that to cash or other rewards given for doing something, which is typically taxable income because it is earned. For example, if a taxpayer gets a free hotel stay after viewing a travel club presentation, that hotel stay is taxable income because it was earned by sitting through the presentation. The same applies to the old getting a toaster to open a bank account.

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off

Thread Tools
Search this Thread
Ask a Question
Question Title:
Your question will be posted in: