[GNC] Credit Card Rewards Refund
Dustin Henning
gcul209 at mynym.us
Thu Oct 14 10:22:42 EDT 2021
Because it is not considered taxable income in my jurisdiction, and
because I only use the credit card due to the fact that I will get
rewards (otherwise I would be a check or cash guy), I record it as a
negative miscellaneous expense. Outside of jurisdictions where this
would be considered taxable income, I believe the various replies to
this thread confirm it's a matter of personal preference. That having
been said, regarding my wife's small business, our accountant did advise
me to reduce the expense of whatever was purchased by the reward amount
redeemed against the purchase(s). Fortunately, my wife prefers to
redeem it as a statement credit anyway, so it goes toward the
purchase(s) on the statement being paid.
Dustin
On 10/14/21 9:22 AM, Steve Welch via gnucash-user wrote:
> One further thought: treating rewards as a negative expense will mask the true cost of whatever was purchased. If you stop using your rewards card, suddenly your apparent expenses will go up.
>
> Both professionally and personally I generally prefer to not muddy expense accounts with negative entries unless it really makes sense.
>
> Sent from my iPhone
>
>> On Oct 14, 2021, at 8:34 AM, rsbrux via gnucash-user <gnucash-user at gnucash.org> wrote:
>>
>> I have a credit card which, like a few others, accrues a small percentage (1-2%) of the amounts spent as a rebate. The rebate isn't subtracted from each charge, but accumulates in the card account as "Reward Points" until I cash them in. The amount is then credited to the card account as a payment. Should such payments be recorded as income or as a negative expense?
>>
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