The article aims to answer the question “Is Cash Back Taxable?”
Below is an excerpt from the original article, you can read the full piece on MoneyGeek HERE.*
Are cash‐backs received from purchases considered taxable income?
No, cash-back rewards are not taxable as income. They are considered rebates or discounts on purchases, not income.
Can cash‐back rewards received in the form of gift cards or merchandise be subject to different tax treatment compared to cash rewards?
Possibly. In some cases, such as gift cards for rewards programs, they can be considered taxable income. For example, if you participate in a wellness program through your health insurance and are rewarded with a gift card, this can be considered taxable income.
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