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Is Cash Back Taxable?

Regarding whether Cash Back rewards are taxable in the United States, the straightforward answer is no. Price.com does not issue IRS form 1099 for these rewards because they’re not taxable income. This perspective is supported by tax preparation authorities like TurboTax, which categorizes rewards into two main types: those that are seen as rebates on spending (such as cashback and statement credits) and those that are treated as income in exchange for a service, which is taxable (like refer-a-friend bonuses and bank account signup bonuses). The IRS views the former category, rebates on spending, as discounts rather than income, exempting them from taxes.

IMPORTANT DISCLAIMER:  We are not tax experts and do not provide legal advice or tax guidance.

Updated on March 29, 2024

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