Category for paying credit cards with cash rewards
what's the best way to categorize when you pay your credit card with cash rewards.
It should not count as income on my income tax, but it certainly isn't an expense.
Wonder what everyone else is doing about this.
thanks in advance
Answers
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Are you tracking the rewards in an account? If not one way to enter the payment is to enter it in the credit card account and enter the category as a transfer back to the same credit card account like [Visa]. Then it will be a one sided entry and not go anywhere.
I'm staying on Quicken 2013 Premier for Windows.
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There's also the possibility to create and use an Income category like "Other Income", "Misc. Income", etc., which does not have a Tax Line Item associated with it. This will show it as Income, but won't show it in Tax Reports or transfer to your tax software.
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That's what I did. I created a category for Other Income:Credit Card Rewards and use it when I get cash back rewards from my credit card companies. It has worked very well for me.
Quicken Classic Premier (US) Subscription: R59.10 on Windows 11
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