Advisor Kyle Luetters Featured in MoneyGeek

The article aims to answer the question “Is Cash Back Taxable?”

Below is an excerpt from the original article, you can read the full piece on MoneyGeek HERE.*

Are cash‐backs received from purchases considered taxable income? 

No, cash-back rewards are not taxable as income. They are considered rebates or discounts on purchases, not income. 

Can cash‐back rewards received in the form of gift cards or merchandise be subject to different tax treatment compared to cash rewards? 

Possibly. In some cases, such as gift cards for rewards programs, they can be considered taxable income. For example, if you participate in a wellness program through your health insurance and are rewarded with a gift card, this can be considered taxable income. 


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Trademarks and copyrights of materials referenced herein are the property of their respective owners. Index returns reflect total return, assuming reinvestment of dividends and interest. The returns do not reflect the effect of taxes and/or fees that an investor would incur. Examples contained herein are for illustrative purposes only based on generic assumptions. Given the dynamic nature of the subject matter and the environment in which this communication was written, the information contained herein is subject to change. This is not an offer to sell or buy securities, nor does it represent any specific recommendation. You should consult with an appropriately credentialed professional before making any financial, investment, tax or legal decision. An index is an unmanaged portfolio of specified securities and does not reflect any initial or ongoing expenses nor can it be invested in directly. Past performance is not indicative of future returns. All investments are subject to a risk of loss. Diversification and strategic asset allocation do not assure profit or protect against loss in declining markets. These materials do not take into consideration your personal circumstances, financial or otherwise. 

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