Originally Posted by
StartinSanDiego
I thought that that card also included utilities as an optional category. We have a very high utility bill involved with our business (10-20K per month) and I have considered the cash back option. However, I do believe that cash back will generate a 1099, whereas the miles do not.
Credit card refunds, cash or miles, do NOT generate a 1099. They are considered a reduction in the cost basis. So, if it's a personal expense, there's nothing to report. If it's a business expense, you should theoretically reduce the amount claimed for the expense (or cost basis, if a capital asset) by the amount of the rebate.
Regardless, the reporting responsibility is on you, not the credit card company, so no 1099.