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Are you referring to interest earned on a PenFed deposit account or rebates on purchases paid by a PenFed CC?
Interest earned on deposit accounts is taxable, but financial institutions won't issue 1099s unless the total amount paid for the year is at least $10.
As far as CC cash rebates are concerned, I believe that the IRS considers these to be refunds of overpayments. As such, they are not taxable income to the recipient.
With all due respect I personally wouldn't listen to any tax advice from anyone on an online forum. The IRS is the final authority on these matters and they have NO sense of humor. I would contact them to be sure.
Just my 2 cents.
@haulingthescoreup wrote:
Good point about clarifying with the IRS, but at the same time, are regular rewards on other cards taxable? Points on American Express charge cards and so forth? I've never heard that they were (again, fwiw), and there's no difference in the PenFed rewards, IMO.
I've been collecting cash rebates from Discover since I got the card in 1986, & I've never seen any indication - Form 1099s, letters from Discover, etc. - that I'm required to required to report or pay taxes on this money.
By contrast, the mutual funds & brokerage firms with which I do business bombard me with paper & e-mails, beginning in December, to keep me informed about my responsibilities to the Infernal Revenue Service. I'd have to be deaf, dumb, blind & locked in the basement not to know that I've got work to do.
I have been doing taxes on base for the last 4 years with training provided by the IRS in 2006 & 2007 and you don't have to claim the money earned by rewards credit cards.
You do have to claim any amount over $10 on any interest bearing account that is held by a bank, CU or other finanical institution.
@rubaty wrote:I have been doing taxes on base for the last 4 years with training provided by the IRS in 2006 & 2007 and you don't have to claim the money earned by rewards credit cards.
You do have to claim any amount over $10 on any interest bearing account that is held by a bank, CU or other finanical institution.
Thinking under.