I may already be paying some fees to the credit card company or interest for which I am not really getting any tax break. So if the credit card gives me some rewards, or cash back...its just like they are giving me discount on money I am already paying them. It shouldn't be thought of as extra income on which I need to pay state and federal taxes.
2006-09-11 05:13:32 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Nope. Any discounts you get from credit cards are part of the contract between you and the credit card company. They're considered "incentives," not income.
2006-09-11 05:19:21 · answer #1 · answered by sarge927 7 · 1⤊ 0⤋
This falls in the "gifts" category. Check the IRS code for that. I believe there is an allowable amount that is tax-free (and $2000 stated by the other answerer sounds right)
2006-09-11 12:20:44 · answer #2 · answered by curious1223 3 · 0⤊ 1⤋
No, if it is a personal credit card.
Yes, if it is a business credit card used to purchase items for the business.
2006-09-14 17:31:39 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
Only if you have deducted the interest as a business expense.
2006-09-16 20:39:11 · answer #4 · answered by Scott K 7 · 0⤊ 0⤋
only if its worth more than 2000 dollars
2006-09-11 12:18:27 · answer #5 · answered by Anonymous · 0⤊ 1⤋
No you do not.
2006-09-11 23:03:48 · answer #6 · answered by linluv2001 2 · 0⤊ 0⤋