<prompt> Human: I am about to have 40,000 points credited to my Chase Sapphire Preferred rewards account and I was thinking of cashing it out for 400 to put in my savings. However, if I have to report it as income and be taxed on it, Id rather use it to grab giftcardstravel assuming those arent taxable income. Can anyone please explain how things like these are taxed? I know I had to pay taxes on the 200 I got for free from Chase for setting up my account... but Im thinking cash backrewards are different in that they are rebates ???. Although, the 40,000 was a bonus... so yeah, confused a little.  <response>: The answer is no.From the horses mouth: The portion of the credit card purchases that Taxpayers can either receive back in cash or request Company to pay to a charity does not constitute gross income to Taxpayers under 61 