I have the app Fetch Rewards. I shared my referral code on TikTok, giving me about $10,000 in points. Is this taxable? It was a one time thing. I am dependent & jobless.

[kaya29107]

Fetch Rewards is an app where you scan receipts for points that builds up, so you can redeem gift cards. However, I shared my Fetch Rewards referral code on social media and got many referrals for points. It was a one time thing, and my video happened to go viral, leading me to have that many points.

[Critter-3]

If they don't have your SS# then how will they ever issue a 1099 to make it taxable ?  Read up here where is says it is tax free ...  https://blog.fetch.com/what-does-fetch-rewards-do-with-your-data/#:~:text=Furthermore%2C%20you'll%20....

[Opus 17]

First point.  Reward points are not taxable to the recipient, they are treated as a discount, like a coupon.  If you use a coupon to save $1 on detergent, that's not taxable income, so it's also not taxable income if you use a reward app to get a $1 reward on the same purchase.

Second point: What did you do on TikTok to be the recipient of other people's points?  If this was a freewill gift, then you have received a gift and gifts are not taxable to the recipient.

However, if you provided goods or services in exchange for the payment, then you are a small business, and whatever you receive in exchange for providing goods or services is taxable at the $US fair market value of the reward.   For example, if you offer, "I will post a video performance of myself if you pay me in Fetch" then it's taxable income just as if you collected cash.  

In other words, you can't get around the new 1099 rules by taking your compensation in a form that does not issue a 1099.  If what you do would have been taxable if people used PayPal and you got a 1099, it's still taxable if you used Fetch and got paid in reward points.  Barter is harder for the IRS to track, but anytime you receive something of value in return for providing a service, that's taxable income. 

The IRS won't be able to track the income, but it's still taxable income under the law.

[kaya3667]

On TikTok, I shared my in-app referral code through the referral program to receive points I can put toward gift cards (If I share you my code, we both get points). Fetch Reward is a couponing app, but I believe the referral program is different. I redeemed many $50 gift cards, which is the highest amount you can redeem for a gift card (they all totaled to about $800). I'm not sure whether to count the gift cards in the "Other Income" on my tax form or leave it out.

[Opus 17]

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@kaya3667 wrote:

On TikTok, I shared my in-app referral code through the referral program to receive points I can put toward gift cards (If I share you my code, we both get points). Fetch Reward is a couponing app, but I believe the referral program is different. I redeemed many $50 gift cards, which is the highest amount you can redeem for a gift card (they all totaled to about $800). I'm not sure whether to count the gift cards in the "Other Income" on my tax form or leave it out.

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If you are compensated for providing a service (TikTok content), then you would be considered self-employed, and you report your compensation on schedule C.  You can deduct ordinary and necessary expenses, and you pay income tax and self-employment tax on the difference.  As the recipient of the compensation, you report the compensation based on its US dollar value, even if it is not in the form of actual money.