Are Costco Citi Card Cash-back Rewards taxable?

[MangoMink]

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?

[Bsch4477]

Cash back rewards are not taxed and will not generate a tax form. 

[MangoMink]

That really doesn't answer my question. Would you mind elaborating?

[Bsch4477]

Costco rewards are not taxed. Cash from those rewards deposited in a bank will not generate a tax form and will not be taxed. 

[AnnetteB6 · Accepted solution]

To add to the answer provided by Bsch4477, when you deposit the cash into your bank, there is no tax form generated showing that deposit as 'income'.  But, if you earn interest as a result of the deposit of the cash, then the interest will be taxable income reported on Form 1099-INT if the total for the year is greater than $10.

@MangoMink