The short answer is…no, they are not. However, there are other types of rewards that can be taxable, such as bank account sign-up bonuses. If you’re someone who accumulates points and miles, you might be wondering what exactly counts as income. For instance, do you need to report cash back earned from a credit card? How about frequent flyer miles or bank reward points?
The good news is that in many cases, rewards earned from using a credit card do not need to be reported to the IRS, and you don’t have to pay taxes on them. But it’s crucial to understand that there are certain situations where you may need to pay taxes on the miles you’ve earned.
To learn more about the difference and get a deeper insight, read the full article online here.