Are Credit Card Rewards and Cash Rebates Considered Taxable Income?
Published 3/7/08 (Modified 1/24/12)
Reward credit card and cash back rebates are great because you get to earn money and receive what is essentially a discount for making ordinary everyday purchases. Today I decided to review my credit card accounts and convert some of my accumulated reward points into usable cash back and retail gift cards. For my versatile Fidelity Investment Reward Card, which earns me 1.5% back on all purchases, I converted 5000 World Points into a $75 deposit towards my linked Fidelity trading account. I also redeemed 40,000 of my total balance of 46,155 Citi Thank You points into four wonderful $100 retail gift cards. I chose to receive high value rewards with the best ThankYou redemption value, and picked out gift cards from Marshalls, Macy's, and Gap. Looks like I'll be going bargain clothing shopping again in the near future in about 1-3 weeks when they arrive.
Am I Supposed To Report Credit Card Rewards and Cash Rebates On My Tax Return?