I have done some surface level research on this and have found that they are not taxable as Cash-back rewards are considered "discounts," and that only Sign-up rewards are considered "income" and are therefore taxable (ex. Credit Card bonus offer of $1,000 for signing up, this will result in some banks sending a 1099 form. Even if the bank does not send one, the person is still responsible for reporting that bonus). However, I have found out that the Cash-back reward certificates are redeemable for cash at Costco locations (It is still not taxable at this point). This made me wonder, if I deposit that cash into my bank, will I have to pay taxes on it since it's miscellaneous? Will it trigger a 1099 form from my bank?
