Rewards card

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Old 01-23-20, 10:24 AM
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Rewards card

We use our cash rewards credit cards for almost all of our purchases. Are the cash rewards taxable income?
 
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Old 01-23-20, 11:24 AM
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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.
 
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Old 01-23-20, 12:19 PM
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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?
 
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Old 01-23-20, 04:27 PM
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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.
 
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