Let’s discuss.<\/p>\n
First, let’s make a distinction.<\/p>\n
There’s a big difference between points from a personal credit card vs. points from a card used for business.<\/p>\n
For the purposes of this post, we’re going to focus on points from a personal credit card, although I hope to do a post on businesses in the future.<\/p>\n
Let’s dive in.<\/p>\n
There are generally two categories of points one can be rewarded:<\/p>\n
1) Points\/Miles\/Cash Back earned via spending – These are generally NOT taxable.<\/p>\n
They are viewed as a discount or rebate on what you purchased, rather than taxable income.<\/p>\n
2) Points\/Miles\/Cash Back awarded as a sign-up bonus when opening an account – These generally ARE taxable.<\/p>\n
You may even receive a 1099 form for the year, showing the amount you were rewarded.<\/p>\n
So, in a nutshell, if you need to spend money to get the reward, it’s usually non-taxable.<\/p>\n
If you don’t need to spend money, it’s generally taxable.<\/p>\n
Spend away!<\/p>\n","protected":false},"excerpt":{"rendered":"
Let’s discuss. First, let’s make a distinction. There’s a big difference between points from a personal credit card vs. points from a card used for business. For the purposes of this post, we’re going to focus on points from a personal credit card, although I hope to do a post on businesses in the future. […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"yoast_head":"\n