adobe

Hate to file the tax return and then receive the 1099, which of the following popular cards send out 1099 for the cash back earned?

Citi Double Cash?
FIA AMEX?
AMEX Blue cash?
Barclay Arrivial?

dukerau

I've never heard of any credit card sending a 1099 for rewards. Checking account sign up bonuses, yes, but credit cards (sign up or purchase rewards), no.

GamecockFan

AFAIK, none of them do. Credit card cash back is generally considered a rebate of your money and isn't taxable. Bank account sign up bonuses, however, do generally create a 1099 for the bonus.

jjmiller69

As stated above none on CC's.
Checking accounts are a different story.

ZzzzX

I think you have your answer.

Churnman

Everyone must stop thinking about cashback and reward points from credit card use as profit or income. They are neither. They are an incentive to spend and you simply get a very tiny percentage back of what you spent. It is also an incentive to apply for an institution's product and you help promote their product everytime you use it, everytime you talk about it, everytime you chat about it or discuss it online or in person. You are their advertising tool. You are a walking billboard for the big banks. You help them get others to get the card who then may spend on it and even pay interest. The card issuer gets money for every swipe you make. It doesn't matter that some use the card more 'leanly' than others and reap some nice rewards for their spending while others may pay interest; in the end you had a part in the success of that product, at the very least in marketing it to others.

VegasGambler

This is because, if you read the fine print of the bonus offer, it technically counts as an interest payment. They should send you a 1099-INT.

I don't believe that a bank can pay you a bonus for having a deposit account without counting it as an interest payment (and be non-taxable); if they could, it would be a big loophole (banks would just give "bonuses" instead of paying interest, and no one would have to pay tax on them)

thehustla

Cash back on CCs is not earned income. Why do people confused this?

thehustla

+1000000

VegasGambler

More importantly, it's not unearned income

ericdabbs

Because they are noobs.

strandedintokyo

I think cashback from credit cards are considered discounts. So there shouldn't be a 1099 issued. It's not earned income.

thehustla

I see what you did there

newbieatmsing90210

But what happens if you actually do get a 1099?

Campath

If you did get one, you have the right to dispute it.