<prompt> Human: If no one knows this, any idea where I can find out? Im thinking about redeeming my rewards and want to know if I should put away any to pay off if I would need to pay taxes on it.  <response>: Credit card rewards are a discount on goods and services, and are not considered income. However, If you make a business purchase that you are deducting from your taxes, you need to report the actual price paid. If you buy a desk for a nominal 400 and receive cash back for 20, then the deductible amount would be 380. 