Posted on March 18, 2010.
Your credit card account cash back bonus as income? My friends tell me that you did not ask for your credit card cash back bonus on your income tax as it is under a certain amout. Is this true?
Since the Wall Street Journal:
The IRS has not issued specific guidance to the public whether discounts cash back cards are subject to tax on income, said a spokesman for the agency. But the IRS does not issue a private letter decision in 2002 that said certain discounts cards are not included in the taxpayer's gross income. Even if a private decision letter applies only to the taxpayer making the request, such decisions are considered an indicator of the thinking of the agency on a particular issue. Tax advisers say rebates are generally regarded as a reduction of the purchase price, and not likely to be taxed. Discounts on purchases made for business or investment can have a more complex, so consult a tax advisor.
Usually, it would be something more than $ 600 card
However, say you have a number of them all under $ 600 but the total exceeds $ 600, then you should really claim any
You do not ask whatever the amount. It is considered a refund is not taxable income.
