From what I have read, credit card "cash back" rewards are not taxable income for businesses. With that being said, QB has a category already setup for "credit card rewards". I have been using this for a while and selecting this category when getting rewards, but today I noticed something interesting. The category is actually setup as "other income", and therefore is actually being included on the "tax summary" as taxable income. My question is this really: what should I put for the "account type" as it really isn't other income such as tips or something that is actually taxable income? And how to properly categorize this what category? There doesn't seem to be a good place to categorize this unless I am missing something. Thank you in advance for any advice!
If you put it as other income it would increase income instead of decreasing the expenses, which is what I've been finding it needs to do. I'm wondering if to change the account type to "Other Expense"?
Have you found a solution?
Sign in for expert help
Ask questions, post replies & join our community of QuickBooks users.
You have clicked a link to a site outside of the QuickBooks or ProFile Communities. By clicking "Continue", you will leave the community and be taken to that site instead.
