How Credit Card Rewards Are Taxed: I Was Surprised!

Are your credit card rewards taxed and if so how do we avoid it?

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⏱Handy Timeline:
0:00 Intro
0:16 What rewards are NOT taxed
1:21 When you ARE taxed
4:13 Can you pay taxes with a credit card?

#BrendanEvan
Disclaimer: Any financial or investing-related topics discussed on this channel are not from a professional investment advisor and are not financial advice for you. This is for entertainment and inspirational purposes only. My opinions are not reflective of the companies mentioned in the video. Also please know that many of the links I have in video descriptions like this one are affiliate links which means I may be compensated by the company whom you do business with at no extra expense to you. Thank you for your support!

Updated Acorns Affiliate disclosure as of 4/9/24:

^This doesn't mean I was paid to make this video, it means I have an affiliate relationship with the company which allows me to make money by people using my links to sign up for services. I have to put this in every video description that includes the affiliate link.

[Aren-Tibbs]

The tax implications are greater for business purchases. If you get cash back on a tax-deductible or amortization purchase, you have to declare it for the discounted price, not the full price.

[BrianKehm]

I’m a small creator and just started using a referral program. I now have $4, 000 of credits to use with the company (expire within a year). If use them, that’ll be taxable income.

[Crescentmoon]

First.... (I've never said that before ignore the cringe)