Credit card rewards you earn by spending, including cash back, points and miles, are generally not taxable income, because they're treated as a rebate on what you bought. Rewards you get without spending, like bank account bonuses and referral bonuses, can be taxable and may come with a 1099.
The IRS's own rule for rebates is short. Publication 525 says a cash rebate you receive from a dealer or manufacturer of an item you buy isn't income, but you must reduce your basis by the amount of the rebate. Card rewards earned on purchases are generally treated the same way. That includes rewards paid in Bitcoin, like those on the Coinbase One Card, though any gain on the Bitcoin after you receive it is a separate matter when you sell.
The exceptions are where people get caught. Below is how each type of reward is generally treated, which IRS forms show up and when, and the situations where it's worth paying a tax professional to look at your facts.
Is Credit Card Cash Back Taxable?
Cash back earned on purchases generally isn't taxable. Whether the issuer pays it as a statement credit, a deposit or points you later cash out, the reward is tied to money you spent, so it's generally treated as a discount on those purchases rather than as income.
The same goes for points and miles earned on spending and for welcome bonuses that require a minimum spend. The form of the reward doesn't change the analysis: cash back and points earned on the same purchase are both generally treated as rebates on that purchase.
What changes the answer is whether you had to spend your own money to get the reward. If you didn't, the rebate logic doesn't apply, and the IRS's general rule takes over: Publication 525 says that in most cases, an amount included in your income is taxable unless it's specifically exempted by law.
When Rewards Are Taxable
Bank account bonuses. A cash bonus for opening a checking or savings account is generally treated as interest. Chase says so in its own offer terms: "Bonuses are considered interest and will be reported on IRS Form 1099-INT (or Form 1042-S, if applicable)." Publication 550 covers the noncash version too: gifts or services for opening an account at a savings institution may be reported to you as interest income on Form 1099-INT. If you're chasing a bonus like the one in our Chase $900 checking and savings bonus guide, plan for the tax.
Referral bonuses. A reward for getting someone else to open an account isn't a rebate on your own spending. Chase's bank Refer-A-Friend terms state that "Bonuses are considered miscellaneous income, and may be reportable to you and the IRS on Form 1099-MISC (or Form 1042-S, if applicable)." That language is from Chase's checking and savings referral program; card referral programs set their own terms, so read the terms of the offer you're using. Our Chase Refer-A-Friend guide covers how those bonuses work.
No-spend welcome bonuses. A card bonus paid just for opening the account, with no purchase required, isn't tied to spending, so it may be treated as income. If one lands on your account, keep the offer terms and ask a tax professional how to report it.
Prizes and sweepstakes. Publication 525 says prizes from a drawing, contest or similar event are included in your income and reported on Schedule 1 (Form 1040), line 8i. A card-linked sweepstakes win falls under that rule.
Are Business Credit Card Rewards Taxable?
Rewards earned on business card spending are generally treated the same way as personal card rewards: as a rebate on what the business bought, not as income. Cash back from a card like the Ink Business Cash earned on office supplies or internet bills is generally treated as a rebate on those purchases.
The business question is on the deduction side. Publication 525's rebate rule says the rebate isn't income, but you must reduce your basis by the amount of the rebate, and its example notes that basis is what you use to figure depreciation if you use the item for business. How that applies to a rewards balance, and how to value points rather than cash, is a question for your tax professional, especially if a lot of spending runs through the card.
The IRS has addressed miles directly. In Announcement 2002-18, the IRS said it will not assert that any taxpayer understated their tax by reason of receiving or personally using frequent flyer miles or other in-kind promotional benefits attributable to business or official travel. It also said that relief doesn't apply to benefits converted to cash, to compensation paid in the form of travel or promotional benefits, or to benefits used for tax avoidance.
If you're comparing cards for a company, our business credit cards page lists the current options.
The 1099 Forms You Might Receive
Two forms cover almost every taxable reward.
Form 1099-INT reports interest, including bank account bonuses. IRS Topic 403 says that if you received interest of $10 or more, you should receive Copy B of Form 1099-INT. Publication 550 adds that you must report all your taxable interest income even if you don't receive one. You file Schedule B (Form 1040), Part I, if you had over $1,500 of taxable interest or ordinary dividends, or if another trigger listed in Publication 550 applies.
Form 1099-MISC reports prizes, awards and other income, which is where a referral bonus can show up. For tax years beginning after 2025, the reporting threshold for these payments increased to $2,000, so for payments made in 2026, a payer generally files a 1099-MISC for other income or prizes of $2,000 or more. The instructions say the threshold may be adjusted for inflation beginning in 2027. Payers must furnish your copy by January 31.
A smaller amount without a form can still be income you report. If a form arrives with an amount you don't recognize, or for rewards you earned by spending, contact the issuer and ask how the amount was figured and whether a corrected form is needed.
What to Keep
For rewards earned on everyday spending, there's generally nothing to log. Keep records in three cases:
- Any 1099 you receive for a reward, with the offer terms that came with it.
- Business card statements showing both the expenses you deduct and the rewards earned on them.
- Anything unusual: large gift card or money order purchases, reselling points, or rewards converted to cash at scale.
The IRS says to keep records for 3 years in most cases, with longer periods for the situations it lists on its record-keeping page.
When to Talk to a Tax Professional
A tax professional earns the fee if you buy money orders or other cash equivalents with a card at volume, run business and personal spending through one card, sell points or miles, or file in more than one country. Each of those moves away from the plain "rebate on my own purchase" case.
For most cardholders the next step is simple: keep earning on spending as usual, set aside part of any bank bonus for tax, and watch your mail in late January for a 1099-INT or 1099-MISC from any bank or issuer that paid you a bonus. If you want rewards that stay on the rebate side, a spending card like the Chase Sapphire Preferred earns points the same way, and the Chase Ultimate Rewards page explains how to use them.
Updated October 10, 2026: 1099-MISC threshold.
