Originally Posted by
sdsearch
Originally Posted by
Evan!
I gotta confess, I have no cash-back credit cards. Is this cash reported back to the cardholder as taxable misc or interest income?
Just as with savings accounts, it's definitely not reported if it's a small enough amount per year. I have had a Discover card forever, and I've never got a tax thing for the cash-back, but my cash-back has always been below the several-hundred dollars which I seem to recall being the trigger for interest income being reported.
Someone who gets
huge amounts of cash-back annually on a card would therefore have to report whether they get a tax thing for their large cash-back.
Rather than guessing, here are some facts:
(a) The
minimum interest for 1099 to be issued is $10.
(b) Rebates are not taxable
(c) Cashback from cashback credit cards are considered rebates.