@MFJohnston wrote:
It depends on *which* Chase Rewards card you have....
@MFJohnston wrote:
... But not Chase Freedom Unlimited...
@Tarantado wrote:
@MFJohnston wrote:
It depends on *which* Chase Rewards card you have....
Chase Freedom and Freedom Flex
@Tarantado wrote:
@MFJohnston wrote:
... But not Chase Freedom Unlimited...
No. Unlimited’s there more for the regular purchases like dining and drug store (3%) and everything else (1.5%) IF you don’t have a general purchase card like Citi Double Cash (2%) or Fidelity (2%) or even better, 2.63% for Bank of America if you have $100k in total assets with them.
$50,000 combined in any accounts with Bank of America or Merrill Edge.@HonnyBrown wrote:
50,000 what in an account for 3 months?
It's still useful without the 50-75% kicker, but that's what makes it most lucrative. 3% back on your choice of travel, dining, online shopping, gas, etc. isn't bad. And you get it all the time, not just when the quarterly category comes around, unless you switch it to something else.@HonnyBrown wrote:
Okay. It's only beneficial if one has a mortgage or investments linked.
I like Chase Flex because I don't have to have accounts linked to take advantage of the rewards.
@ceasesmith wrote:
I just read an article about a guy who made $300,000 in one year on rewards. Did things like buy those cards you can cash. Although how somebody with, or earning, that kind of money has TIME to go to Walgreens and buy $200 in gift cards every day kinda boggles my mind.
IRS said it was taxable income.
I think that fight will drag on for years...and years...and years!
@HonnyBrown wrote:
Okay. It's only beneficial if one has a mortgage or investments linked.
I like Chase Flex because I don't have to have accounts linked to take advantage of the rewards.
@sandyf wrote:
Maybe I will save one of the tortillas I get for my bday meal tonite and send it to the IRS with my tax return in payment for that meal.
Yes, you don't want to keep much cash in your BofA accounts. But if you have some investments elsewhere, you can often get a transfer bonus to move them to Merrill Edge, and then quality for the higher credit card rebates. You also get other bonuses like ATM rebates, reduced/waived fees and a free safe deposit box.@sandyf wrote:
Yes, I agree about having to have a linked acct. For BofA a mortgage does not help. My Bof A account pays essentially zero interest right now. I almost cancelled my card last year due to not thinking it was worth the cash back at the expense of $50000 in my acct at .00001 % interest but then took the plunge and opened a Merrill acct where I was able to find very few, but some, investments that paid a decent enough interest.
@sandyf wrote:
Cease, did they mean the rewards you get from your credit card percent back are taxable? What about the free meals I am getting for my birthday this month? Do I have to report those too? Maybe I will save one of the tortillas I get for my bday meal tonite and send it to the IRS with my tax return in payment for that meal.
@ceasesmith wrote:
I just read an article about a guy who made $300,000 in one year on rewards. Did things like buy those cards you can cash. Although how somebody with, or earning, that kind of money has TIME to go to Walgreens and buy $200 in gift cards every day kinda boggles my mind.
IRS said it was taxable income.
I think that fight will drag on for years...and years...and years!
@MisterBill wrote:
It's still useful without the 50-75% kicker, but that's what makes it most lucrative. 3% back on your choice of travel, dining, online shopping, gas, etc. isn't bad. And you get it all the time, not just when the quarterly category comes around, unless you switch it to something else.
I have three Chase Freedom cards, but I only use them for the 5% categories. Having gas as the 5% next quarter means I can switch one of my BofA Cash Rewards cards to something else, probably travel.
@myst4au wrote:
So, let's go down the rabbit hole that Cease pointed out. If a rebate on a credit card is income, I would think that if you buy something for $100, fill out a form online, and take a photo of the receipt and UPC and submit them, and 3 months later they send you $15 as a rebate, that would be income also. Want instant gratification? Go to the supermarket. Buy 5 cartons of soda for $15. The register shows $15 owed. Let them scan your loyalty card, and magically, $5 comes off the bill. That would also be income. The issue of the value of airline miles (loyalty points) being taxable has been around for decades. When would it be taxable? When you earn them? If so, when they expire, do I get a rebate? When I use them? If so, is the value the cost of a full-fare ticket that the miles replaced? A can of wriggling worms.
@Tarantado wrote:
@myst4au wrote:
So, let's go down the rabbit hole that Cease pointed out. If a rebate on a credit card is income, I would think that if you buy something for $100, fill out a form online, and take a photo of the receipt and UPC and submit them, and 3 months later they send you $15 as a rebate, that would be income also. Want instant gratification? Go to the supermarket. Buy 5 cartons of soda for $15. The register shows $15 owed. Let them scan your loyalty card, and magically, $5 comes off the bill. That would also be income. The issue of the value of airline miles (loyalty points) being taxable has been around for decades. When would it be taxable? When you earn them? If so, when they expire, do I get a rebate? When I use them? If so, is the value the cost of a full-fare ticket that the miles replaced? A can of wriggling worms.
Don’t overthink it. Credit card rewards are non-taxable. The IRS treats rewards as a “discount,” since you are spending to receive a “discount.”
[www.irs.gov]
That is merely a discount on your purchase, the same as a coupon would be.@myst4au wrote:
Want instant gratification? Go to the supermarket. Buy 5 cartons of soda for $15. The register shows $15 owed. Let them scan your loyalty card, and magically, $5 comes off the bill. That would also be income.