Do I have to pay taxes on credit card rewards?
I may already be paying some fees to the credit card company or interest for which I am not really getting any tax break. So if the credit card gives me some rewards, or cash back…its just like they are giving me discount on money I am already paying them. It shouldn't be thought of as extra income on which I need to pay state and federal taxes.
Nope. Any discounts you get from credit cards are part of the contract between you and the credit card company. They're considered "incentives," not income.
November 20th, 2008 at 6:45 pm
only if its worth more than 2000 dollars
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November 20th, 2008 at 7:33 pm
Nope. Any discounts you get from credit cards are part of the contract between you and the credit card company. They're considered "incentives," not income.
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13+ years experience as a paralegal specialist
November 20th, 2008 at 7:43 pm
This falls in the "gifts" category. Check the IRS code for that. I believe there is an allowable amount that is tax-free (and $2000 stated by the other answerer sounds right)
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November 20th, 2008 at 8:08 pm
No you do not.
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November 20th, 2008 at 8:47 pm
No, if it is a personal credit card.
Yes, if it is a business credit card used to purchase items for the business.
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November 20th, 2008 at 9:14 pm
Only if you have deducted the interest as a business expense.
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