Are credit card cash rebates or statement credits taxable?
Do you have to report/pay taxes on a credit card cash rebate or statement credit?
Is this considered income (taxable), or a discount for products purchased (not taxable)?
Do you have to report/pay taxes on a credit card cash rebate or statement credit?
3 Responses to “Are credit card cash rebates or statement credits taxable?”
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Search engine terms: statement credit taxable OR taxed,
Generally, No.
However, if the card was used for deductible business expenses, you would have to subtract the rebate/credit from the amount of the deduction.
No, the Discover “cash back” and visa/mastercard “rewards” or airline miles are all non-taxable.
Unless of course you sell them. Then the money is taxable. (This is how the IRS handles airline miles for their own employees.)