This is the first year I have received a 1099-misc for credit card cashback even though I have received similar cashback rewards for this same card for 10-12 years. My concern is even if they are not taxable income I will increase my audit chances since I have received a 1099 form for them.
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The simple answer is: if you got a 1099-Misc, it's taxable.
There was, apparently, something about your rewards that was different from the general credit card rewards, which are viewed by the IRS as a discount, not income.
The simple answer is: if you got a 1099-Misc, it's taxable.
There was, apparently, something about your rewards that was different from the general credit card rewards, which are viewed by the IRS as a discount, not income.
is the credit card business related? the IRS has ruled that in general cash backs / rebates are not taxable. however, sometime there can be awards for new credit cards or certain features that you apply for and get a reward that is not really a rebates and is taxable.
@Hal_Al @macuser_22 Hi, one quick question. I understand that in general, credit card cash back is not taxable. Therefore, if I do not receive 1099 form from credit card company and related institution, can I assume that I do not need to report any credit card cash back because they are not taxable?
Thanks
H
Q. If I do not receive 1099 form from credit card company and related institution, can I assume that I do not need to report any credit card cash back because they are not taxable?
A. Yes.
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