Cap One Rewards and the IRS...

[creditgambler2018]

Does Cap One report to the IRS or State franchise board of the rewards that are earnes on a credit cars as income?????

[Anonymous]

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@elcocaino2010 wrote:

Does Cap One report to the IRS or State franchise board of the rewards that are earnes on a credit cars as income?????

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Wow. How much did you earn in credit card cash back rewards last year?

[OmarGB9]

Shouldn't as it's earning rewards on your own money spent.

[UncleB]

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@elcocaino2010 wrote:

Does Cap One report to the IRS or State franchise board of the rewards that are earnes on a credit cars as income?????

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I've never received any type of tax form, 1099, etc. for cash rewards.  That's not to say it's never done/been done, but I'm not familiar with it.

My own rewards return from each source is so minuscule (<$200 per source) that I'm not to concerned about it.  If I ever have to use a CPA again I might mention it, until then honestly I'm not too worried. 

[-Cal-]

The IRS considers credit card rewards to be rebates and they are not taxable. From their point of view its basically a discount on your purchases made. If no financial transaction is required (you get rewards just for signing up) then its considered taxable. CA FTB follows the same rule.