 TITLE: Are Credit Card Rewards Taxable? CONTENT: Are Business Credit Card Rewards Taxable?\n-----------------------------------------\nRewards earned with a business credit card are treated the same as consumer credit card rewards when it comes to income taxes. However, it's important to be aware that business credit card rewards can affect the amount you deduct on your taxes. That's because you can only deduct the _net_ _cost_ of business expenses, and credit card rewards may lower that cost.\nSuppose you bought $1,000 worth of computer equipment with your business credit card and earned $20 in cash back rewards for doing so. Normally, you'd be able to deduct the full $1,000 as a business expense. In this case, however, the $20 reward reduces your net cost by $20, so you can only deduct $980. (By the same token, using a $20 discount coupon on the purchase or getting a $20 rebate from the manufacturer would also reduce your net cost and affect the amount you could deduct on your taxes.) END