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Do I have to file 1099-INT for cashback from credit cards?

franzcatch 2,484 2,664 February 1, 2012 at 12:00 PM
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Last Edited by franzcatch February 1, 2012 at 12:58 PM
This year I have gotten a couple hundred bucks back from credit cards from regular cash back purchases. I also got $300 back from Chase after signing up for their card.

Do I need to claim these as income? If so, do I treat it as money from a 1099-INT or something else?

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#2
Did these banks send you 1099's? If not, nope. I believe these are treated as a 'rebate'.

Here's the latest on Citi & bonuses & the IRS - http://articles.latimes.com/2012/...s-20120124
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#3
not afaik


well..... let me put it this way..... officially? maybe.

my rule of thumb is to not report it unless you get an IRS form.

Sometimes you open a real can of worms by reporting things that "don't exist" officially (e.g. no IRS form, e.g. the IRS didn't receive a 1099 report from the bank but you are reporting interest).
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#4
I've never heard of having to report cashback on your tax returns. Furthermore, my 1099-INTs have never contained cashback amounts.
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#5
Quote from impact1400 View Post :
I've never heard of having to report cashback on your tax returns. Furthermore, my 1099-INTs have never contained cashback amounts.
Ditto to that.
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#6
1099 INTs are never sent for CC bonuses, only Bank bonuses.
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#7
Quote from franzcatch View Post :
This year I have gotten a couple hundred bucks back from credit cards from regular cash back purchases. I also got $300 back from Chase after signing up for their card.

Do I need to claim these as income? If so, do I treat it as money from a 1099-INT or something else?
Hell no Big Grin
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#8
The cash back you get from opening a credit card account and spending XXX in X months is not taxable as income. It's considered a reduction of the purchase price. No problem, don't worry about it.

The cash back you get for opening a checking/savings account IS taxable. Your bank should send you a 1099, but if they don't, you still have to report it. This goes for all those like me that took advantage of the $125 or $150 offers from Chase this year.
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#9
They had a really good sale the other day at Cosco and I feel bad about cheating Uncle Sam out of their fair share. Should I claim that as income too? Wink
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#10
Quote from jonnyd13 View Post :
The cash back you get from opening a credit card account and spending XXX in X months is not taxable as income. It's considered a reduction of the purchase price. No problem, don't worry about it.

The cash back you get for opening a checking/savings account IS taxable. Your bank should send you a 1099, but if they don't, you still have to report it. This goes for all those like me that took advantage of the $125 or $150 offers from Chase this year.
That's the excuse - that these SPECIFIC cards (re: linked story) gave you miles just for signing up, so therefore they were not rebates (because no purchase was necessary).
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#11
Funny, I was just reading this article this morning
http://www.forbes.com/sites/kelly...taxpayers/

As others have said, unless your credit card files a 1099-K with the IRS, you technically do not have to report it.
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#12
Based on how the tax code is written, which is actually really simple to begin with. The of the tax code is written like this (para phrasing of course):

Paragraph 1 of page 1

You will pay tax on any source of income no matter what, Exept for (this is where is gets complicated):

the rest of the tax codes state all of the times that you don't have to pay tax.
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#13
Nope. They are considered "rebates"
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#14
rebates do not qualify for 1099's
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#15
Hey guys I have a similar question, I read up that rewards MAY BE TAXABLE if it goes beyond 600$, CBS confirmed it this morning, I just couldn't find it on the IRS website. Declare it as other income in 1040. But I'm not sure! Please help!
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