cashback rewards tax free?

[Anonymous]

usually i have my rewards as direct deposit , is the irs coming after me fo it?

[gdale6]

Nope, AFAIK only checking/savings bonuses are reported as interest income.

[Anonymous]

Cashback rewards are considered discount, not income, thus tax free.

[Anonymous]

A few months ago I was concerned about the same thing so I did some research. As of right now, cash rewards earned from credit cards are not taxable because they are considered a "rebate" on the money you spent. Sign up bonuses for checking and savings accounts are considered taxable income and you should receive a 1099 form from the financial institution.

[Anonymous]

I'll pile on. The IRS has issued a regulation stating that perosnal credit card rewards are not taxable income. You're going to be fine. 

[Open123]

When a reward has an established monetary value (cashback) and earned from tax-deducted expenditures, it is taxable as income.  This is one of the reasons why most businesses prefer travel rewards points over cashback.