
Jun 6, 2026
✦Financial Express
Not all credit card bonuses are tax-free for Americans: What IRS rules say
Many Americans use credit cards for rewards, but not all are tax-free. The IRS views most rewards as rebates, not income. However, welcome bonuses for opening an account without spending, and referral bonuses, can be taxable. Taxpayers must report these earnings, even if they don't get a 1099 form.