Cashback Rewards

[MrsH]

In 2016 we used our personal card for business expenses that were reimbursed by our company. Since we used our personal card we received a good amount of Cashback Bonus that we redeemed in 2016. Do we claim these rewards as income since it was reimbursed by our employer?

[Patrice]

No, this would not be considered income.  The IRS states that reward points/cash back are treated as reducing the purchase price paid for an item and are usually not included in the buyer's gross income.

[MrsH]

So even though my husbands company reimbursed us for the items that gave us the cashback, we dont have to claim it?

[Patrice]

That is correct.

[MrsH]

Thank you!