Hi,
Do i have to pay tax for reward points earned from business expenses from credit cards and redeemed for gift cards?
Thanks
I am not selling the gift card or air miles. The points earned from my business card is automatically transferred to my personal account. I call them and redeem the points for store gift cards and travel stuff.
You had to ask.
Keep your mouth shut.
Legally, yes, but Jaysus!
You may have to now. Obama has big ears.
No, the reward points aren’t taxable.
I would say no. The IRS decided years ago that airline miles, rewards points, etc., had no value for tax purposes. At the time, they were considered with keeping taxpayers from using airline miles or rewards points to purchase airline tickets for business travel and then deducting the “value” of the miles or points as a business “expense” (without paying any money out-of-pocket).
A “rebate” is not considered income.
Only if you sell them.
And yes, if you convert them to gift cards and sell the gift cards on eBay, it’s taxable.
The IRS threw in the towel on all other economic rationalization–they even agreed that frequent flyer points earned by IRS employees from doing government work wouldn’t be taxed unless sole.