Expecting a big check this year from your cash back credit card? We hope so. If you are, you may also be wondering if this is considered income and taxable by the IRS.
While it's no secret that the IRS wants to categorize as much as possible as income, Uncle Sam hasn't decided he wants a big chunk of your credit card rewards too. In fact, credit card rewards are typically considered rebates, not income, so they're not included in a taxpayer's gross income.
Whether your credit card rewards come in the form of miles, cash back, or points, for now you're safe to use them as you please without worrying about tax consequences. Let's hope it stays that way!
