Are cash rewards treated any differently from rewards in the form of merchandise or services?
2007-02-17 05:30:31 · 5 answers · asked by Version 1 in Business & Finance ➔ Taxes ➔ United States
No, they are treated as a reduction in the finance charges. Since these finance charges are not decuctible on an individual return there are no tax consequences.
On a business return, the interest expense claimed must be reduced by the value of any award amounts received.
2007-02-17 05:56:15 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
They aren't taxable, since they are considered to be the equivalent of a discount on your credit card payments. This is whether it's cash back, or merchandise.
2007-02-17 11:48:52 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
Well you could say they are taxable, they are technically a form of income aren't they? Not sure that anyone has reported them or gotten in trouble if they didn't.
2007-02-17 05:38:24 · answer #3 · answered by Anonymous · 0⤊ 1⤋
it's cash back or rewards in place of cash, it's your money. it like a rebate. not a tax issue.
2007-02-17 05:43:02 · answer #4 · answered by Anonymous · 0⤊ 0⤋
no
2007-02-17 05:46:13 · answer #5 · answered by smh60437 3 · 0⤊ 0⤋