Do you have credit card points? Make sure they’re not taxable – CBS Sacramento

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Mary Christenson had been saving her credit card points for years. The retired teacher is renovating her house, so the extra $2,200 would come in handy for new appliances.

But in January, Mary received a notification from her bank that a 1099 was being filed for her credit card rewards — declaring it all taxable income, she says.

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“Well, it’s like they weren’t even going to listen to my explanation,” she said. “They’re just saying, no, it’s over $600, so we have to report it.”

Mary raises a point. After contacting CBS13, Kurtis investigated the matter in case you were wondering if your own credit card rewards were taxable.

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The IRS considers all credit card rewards received as a result of expenses as non-taxable income. This includes points, miles and cashback earned. As long as you spend money to receive the rewards, the Internal Revenue Service won’t touch it.

But if you earned points or miles just by signing up for a card or referring a friend, those are considered taxable gifts.

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In Mary’s case, she says all of her rewards were earned through the purchase. His bank said it was reviewing the matter, but did not respond to requests for additional comment.

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