Originally Posted by
StartinSanDiego
No, not sure about the 1099. I just assumed that the IRS wouldn't let something like that go by with a nudge and wink. Better ask someone more knowledgeable than I.
found this online:
Tax Impact
It is widely believed that credit card cash-back rebates are not taxable to the cardholder. Rebates represent a portion of income that already has been taxed, or will be taxed. Also, since they are effectively a discount, or a return of the portion of the purchase price, this is not considered income to the cardholder. Payers of income are required to file a 1099 form with the IRS and send a copy to the individual who received the income. Since card companies do not consider cash-back rebates to be income, they do not send cardholders a 1099 form for these amounts.
Read more: Is Credit Card Cash Back Taxable? | eHow.com