Are Credit Card Rewards Taxable?

Credit: @ZachBrazao
▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

ABOUT JASMINE DILUCCI, JD, CPA, EA

Jasmine DiLucci has specialized in tax since high school when she first became licensed to represent taxpayers before the IRS.

Now as a tax attorney and CPA, she works with individuals and business owners across the nation to on Tax Planning, CFO Advisory, and IRS Tax Resolution

How Jasmine Got Here…

18: Became an Enrolled Agent, licensed to represent taxpayers before the IRS.
22: Earned an Accounting Degree and a Master’s in Finance.
23: Became a CPA
24: Stepped into leadership as she took over her own CPA firm
26-28: Juggled full-time studies at SMU Law while she was growing her CPA firm.
28: Graduated from law school 4th in her class and became an Attorney, all while managing her CPA firm.
29-31: Expanded her CPA firm to seven figures, with a focus on delivering top-notch service and exceptional value to every client.
32: Launched Tax Leverage to offer free online education and combat the rise of “tax gurus,” aiming to provide real, accessible tax knowledge.
Today: She’s dedicated to running her firm and leveraging her expertise to educate and empower others, helping individuals and businesses navigate the complexities of taxes and finance.

▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬▬

Disclaimer: This information on this channel is for educational purposes only and does not constitute professional legal or tax advice.

# # #jasminedilucci

[DrawDame]

This is nothing, I’ve been getting paid in Kellogs cereal box tops since ‘09. Tax free living

[BadGood]

If you’re curious—CC points are considered rebates, which is why they aren’t taxable in most cases.

[Zadnak]

As a churner, 16 credit cards for $5200 is awful for rewards. It should be at least double that to make it worthwhile.

[cms]

But I took it a step further. I told my boss to start paying me in monopoly money and used scratch-offs!

[Sangramoire]

I told my boss to stop paying me and now I pay no taxes.

[AirLionTurtle]

I knew it! My accountant categorized my CC rewards as "lottery winnings", which I had a feeling wasn't going to be taxed the same

[mike]

3 businesses. We run 1.6m through Capital One Spark NET30 card. 2% unlimited.
So $32, 000 this year.
Vendors that don’t take a card we don’t do business.
Net 30 means you must pay in full each month. There is no interest rate.
$32K allows us to vacation 5 times a year.

[LGUProductions]

To add to this, if you refer someone for a credit card and get a bonus you get taxed on the referral. Credit card points earned from spending (regular spending and for sign up bonuses) are considered and rebate, so they’re not taxable due to that.

[ynedd]

Watch our dear tax attorney struggle to keep a straight face, hahaha!

[KEVINSURIEL]

Once she start smiling you know you about to hear some real knowledge 😊

[NightmareEsq]

Love how you can even use humor/satire to also teach valuable information

[nohappymedium]

But upon valuation, you'll notice he said that they're Applebee's gift cards and therefore worthless because that restaurant is garbage.

[CJ-otpg]

You're absolutely right that they're taxable if in exchange for a service. Another real world example is if you refer a friend and get let's say 10k points (~$100) for it, the Bank will send you a 1099-MISC to file with your taxes the following year.

[focho]

I don't do my taxes, i really don't understand accounting and everything related to this subject. But your videos follow me everywhere. Its a sign i should try to learn again. Shout out to my almost wife for do those things. (She major in that)

[Chief_]

Been looking for the answer to this question for years!

[pawelwaszczuk]

I like your videos for the knowledge you provide, but the once I enjoy the most are with that comedian - for your smile 😊

[beccalife]

It was a tip! Maybe not a accurate one but it was a tip!

[dontwitty]

just like an apartment complex giving the manager a "free" apartment- it's still exchange of something, with a monetary value, for services -- it's taxed as income

[deltaecho]

I love this type of video -- cracks me up. Yes, I too know a bit about the subject matter you present. 😊

[jb]

When the dimples come out! It's game over!!!😂😂👏👏👏