Actually the IRS does NOT consider cash
The IRS’s position is that these transaction-related benefits are “rebates” or “discounts,” not taxable income. The IRS first came to this conclusion in a 2002 memorandum and later confirmed this reasoning in a 2010 memorandum.
Here’s what the IRS had to say in the later memo:
“Taxpayers will make purchases with the credit cards, and as a result of those purchases, will be entitled to receive rebates…. The portion of the credit card purchases that taxpayers can… receive back in cash… does not constitute gross income to taxpayers.”
rewards as income: