How do I account for Cash-Back-Rewards-Check from my credit card?
I guess I could just declare it as income, but that doesn't feel right.
I didn't earn it by programming (my job).
When I get rebates, I just reduce the deduction by the amount of the
rebate. For example, if I buy a printer for 120.00 and get a rebate of
30.00, I claim an expense of 90.00.
I don't know how to deal with these Cash Back Rewards Checks.
Any suggestions please?
If you get a rebate on a business purchase (where you, tax-wise,
deducted the cost from taxable income) the cash-back reduces your cost
for that item, and is effectively taxable income. If it's on your
personal credit card, for groceries, etc, assign it to anything you
want (I just have a catagory of "rebates" as there is no tax
consequence). IT is NOT taxable income in that case.