I dont own a business and am just a regular executive member. I am not sure if I need to report Costco reward gift certificate when filing my tax returns? Is there a threshold or certain dollar amount where you would need to?
You are correct. You do not need to report the Costco reward gift certificate on your tax return, and you do not have to pay taxes on any cash received back from Costco as a result of the award.
So if I understand correctly, since the 2% is a cash back on the purchases I made, it is not considered income therefore I will not be receiving a 1099 from Costco even if the amount was $750 correct?
That is correct. Cash back on purchases is not income. You will not get a 1099 from Costco. The amount doesn't matter.
Your question has been answered thoroughly and repeatedly. I am closing this thread.
Member rewards are basically a merchant discount, like coupons, and are not taxable income.
Do you I need report it on my tax return or pay taxes on the amount?
Opus17's answer was "NO!" IT is a rebate not income - The only case where a rebate might effect income reporting would be if you purchased a tax preparation program and filed for the year the full cost as a miscellaneous expense and then subsequently received a reduction in the cost by way of a rebate clearly associated with the purchase --- no one is going to chase that one down!
So if I understand correctly, I do not need to report Costco reward gift certificate on my tax return or pay taxes on any cash received back correct?
So if I understand correctly, I do not need to report Costco reward gift certificate on my tax return or pay taxes on any cash received back from Costco correct?
So if I understand correctly, I do not need to report Costco reward gift certificate on my tax return or pay taxes on any cash received back from Costco correct?
That is correct. You do not need to report the Costco reward gift certificate on your tax return, and you do not have to pay taxes on any cash received back from Costco as a result of the award.