I have written before about the Costco Anywhere Visa Card which offers cash rewards on such purchases as 4% on gas, and 3% on restaurants and travel. One evening, while paying for our meal, a friend mentioned that he also has a Costco Card, and that he received a 1099 form for his cash reward because it exceeded a certain threshold.
While I don't doubt my friend's story, I have not been able to confirm this anywhere. I could not find any mention of it in the Costco Visa materials that I have. I always thought that the credit card cash reward was not taxable. And searching the internet, I was not able to find anybody else that actually received a 1099 for their cash reward.
Getting to the point of my post, has anybody else received a 1099 form for their Costco Visa reward? Or for that matter, has anybody received a 1099 for any credit card cash reward program? I'd be interested to know. Thanks.
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1 comment:
I think rebates and cash rewards are exempt from income tax. So there should be no 1099. Only reasons I know for a 1099 would be a promotion gift that exceeded a threshold or forgiveness of debt.
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