Credit Card rating website CreditRating.com revealed that holders of popular cards find the fees they pay to be a ‘bargain,’ according to Globe News Wire. In fact, around 20% of these customers agree with this. The survey also shows that customers find that the features the cards offers correspond to the annual fee they pay.
However, Globe News Wire clarifies that the respondents seek to avail the on-going rewards programs of these credit card, instead of the introductory bonuses offered by the banks. Around 78% of the cardholders make use of the rewards they get more than once a year. For many respondents, they use these at least once every few months and even once per month.
Meanwhile, Ann Carrns from the New York Times warns customers that the bonuses or rewards they receive may be taxable. Clients of major banks such as Chase, American Express and Discover who received such benefits reports that they are to pay 1099 tax forms.
According to tax experts Donald Zidik, the eligibility of these offers (rewards or bonuses) for taxes is based on whether or not they are ‘tied to spending on the card.’ This means that getting cash back or rewards through credit card purchases will not qualify for taxes, but getting bonuses merely for getting an account or referring new customers can be taxed.
With the revelation that some bonuses can be considered taxable, credit cardholders are advised by Zidik to report these as income.
