If taxes don't apply credit card DEBT, would a CREDIT applied to your credit card account be taxable?

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If taxes don't apply credit card DEBT, would a CREDIT applied to your credit card account be taxable?

2007-01-15 10:52:10 · 3 answers · asked by madscidoc 1 in Business & Finance ➔ Taxes ➔ Other - Taxes

3 answers

The answer is no for payments or return of merchandise. This is not income.

If you ask the credit card company to reduce your credit card debt, this is income according to the U S Suypreme Court.

2007-01-15 11:15:36 · answer #1 · answered by c1523456 6 · 4⤊ 0⤋

Credits issued are usually for charges that are being reversed on money already spent (i.e. taxed).

2007-01-15 19:00:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋

Probably not. This would be a return to you on money that is already taxed. Don't worry about it.

2007-01-15 18:59:48 · answer #3 · answered by David L 6 · 1⤊ 0⤋