Category Archives: Rewards

Are Credit Card Rewards Taxable?

Pile of cashCitibank has sent out 1099 tax forms for 2011 to people who received over 24,000 points as an incentive for opening a checking or savings account.

Usually prizes, awards and the such, worth over $600, are reported to the IRS as miscellaneous income.

While the 1099’s were NOT sent out for reward points on credit cards, the recent mailings suggest cardholders might have to pay taxes on all their points sometime in the future, if and when the IRS changes its mind.

Citicard regards any promotion to open an account as a taxable “gift.”

A spokesperson said, “When a customer receives a gift for opening a bank account — whether cash, a toaster or airline miles — the value of that gift is generally treated as income and subject to reporting.”

The IRS currently views reward points on credit cards as a form of “rebate,” which is not considered income, but reduces the price the customer pays for his or her purchase.

As an example, when a customer opens a new Macy’s credit card, he or she gets up to $100 off their first bill on purchases made within 48 hours of opening the new account – the credit reduces the cost their initial statement.

However if Chase credits a new account holder 25,000 points, without even making a purchase, wouldn’t that be considered a gift since nothing was bought?

The IRS treats both promotions the same now as not being taxable.

Stay tuned folks, because the tax situation right now favors cardholders, but Congress and the IRS might want to plug this tax “loophole” in the future.

VentureOne Visa Card

Open a new account and get 10,000 bonus miles for free!

Vacation with Venture Credit Card
CapitalOne Venture Card

The VentureOne Card from CapitalOne offers:

  • 1.25 miles per dollar on every purchase
  • One-time bonus of 10,000 miles once you spend $1,000 in the first 3 months
  • Get up to 15 more points per dollar when you shop on the Perk Central retail network
  • Points do not expire
  • No limit to the points you can earn
  • Redeem points for gift cards and more

Besides the Capital One Venture One Visa credit card does not charge you any annual fee or interest charge for the first year of membership!

You can shop until you drop for a year without paying any finance charges until 2013, if you pay the monthly minimum payment of 1% of the balance.

With extended warranty and fraud protection it pays to use the Venture Card, as long you spend less than you make: shop responsibly.

Apply here and enjoy now, pay as you go.

MTV Visa Card

Earn up to 5X the points and get rewards that rock.

For those who love entertainment the MTV All Access Visa rewards you with

MTV Visa Card
MTV All Access Card
  • 5 points per dollar spent on entertainment
  • 2 points per dollar spent on restaurants
  • 1 point per dollar on all other purchases
  • 25 bonus points each billing period you keep your account in good standing by paying on time
  • Points don’t expire
  • There’s no limit to the points you can earn
  • Redeem points for travel, cash, merchandise and more
  • No annual fee
  • No foreign transaction fee (perfect for travelers)

Plus there is zero fraud liability on unauthorized purchases  and an extended warranty program.

This is the perfect card for movie and concert fans because they get a 5% discount when they buy tickets for their favorite events.

Apply for your MTV Visa card here.

Cache Visa Card

Get an astonishing 5% off on purchases at Caché, Caché Lux and cache.com, when you use your Caché VISA card.

Cache Credit CardAs a bonus for opening a new account, Caché card holders receive 1,000 points after their initial purchase.

Purchases made with your Caché Visa Card also earn you 1 point for every dollar spent everywhere else. The rewards can add up very fast towards your next shopping experience at your local Caché store or even online at cache.com.

Other exclusive perks available ONLY to members of the Caché Visa Card group are:

  • 20% birthday discounts at Caché
  • $6 shipping on Caché orders (free shipping with $50 orders)
  • Automatically receive $25 Caché gift card after earning 2,500 points
  • Invites to Luxe Fashion events

The Caché Visa Card has NO annual fee, pre-set spending limit, interest charge and allows you 24 days to return an item before paying for it, when bills are paid in full for each statement.

Besides that, as a user of the Caché Visa Signature Card you will have at no cost:

  • Worldwide Acceptance – Use your Caché Visa Card everywhere Visa credit cards are accepted.
  • Zero Fraud Liability – If someone uses the card without your knowledge you pay nothing.
  • Automatic Bill Payment – Pay your bills online, mobile apps, via mail, or in-store.
  • Auto Rental Insurance – As a complimentary service you receive car rental insurance for free.
  • Travel Accident Insurance – You are covered automatically, at no extra cost, when you purchase a ticket for travel on common carriers with up to half a million dollars in coverage. For complete terms and conditions, call 866-779-6259.
  • Convenience Checks – You can make purchases at places, which don’t accept credit cards, by using convenience checks supplied to you at no cost.
  • Balance Transfers – Pay off higher rate credit cards and save on interest with the Caché Visa Card with balance transfers (3% fee applies).
  • Cash Access – Should you need instant cash there are over 1 million ATMs worldwide to fund that emergency need, but at an APR of 24% plus 3% upfront fee.
  • Flexible Payment Options – How you pay is up to you. Use U.S. mail, telephone transfers, automatic bill payments from any United States account.

Because the Caché Visa Card is issued by U.S. Bank, you qualify for a FREE gold checking account at U.S. Bank with NO monthly maintenance fees (a $12.95/month value)

Get your Caché Visa Card here and receive 1,000 points on your first purchase in addition to the continuing 5% discount.

Visa Signature Luxury Hotel Collection
Caché Visa Signature Card members receive exclusive lodging benefits at Visa Luxury Hotel which feature:

  • The best available suite rate
  • Automatic room upgrade upon arrival, when available
  • Complimentary continental breakfast
  • 3PM check-out, when available
  • VIP Guest status
  • $25 food or beverage voucher
  • Free in-room Internet

Learn more about this at visasignaturehotels.com