Are Credit Card Reward Taxable – The Dark Side Of Taxes
Do you remember the story of Konstantin and Nadezhda Anikeev? The couple caught the limelight in 2021 when the IRS contented them for owing taxes of more than $300,000 on their earnings from credit card rewards in 2013-2014. Anikeev later dragged the case to the court, and the judge ruled that most of the rewards were not taxable as they were rebates, not income. However, the points they earned for purchasing cash equivalents were declared taxable. The case points to confusion – do you need to pay tax for your credit card earnings? The question seems contextual in this full-swing tax season. W...