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Now, let's create a Credit Card Credit for cash back rewards. At the top, click the Create menu (+) and select Credit Card Credit. Choose a payee and enter the correct Credit Card Account. Go to the Account details section. Enter Other Income or the income account you created under the ACCOUNT column. Enter the cash back amount. Click Save and close.
Likewise, if a business receives cash-back rewards or gift cards, then it should reduce the business deduction of the items purchased with the rewards credit card. If the rewards are earned by an employee of the business through the use of a corporate credit card, then the IRS would consider the value of the cash or gift cards to be taxable income to the employee.
Entering the reward amount as a refund or credit through the credit card menu reduces the amount due but that's not how this card works. The point values accumulate until the cardholder decides to use them, not automatically.
How to Record Credit Card Cash Rewards in QuickBooks This guest post is brought to you by Alicia Katz Pollock of Royalwise Solutions, Inc. I just got a new credit card that gives me cash back, a percentage of the money I spend.
I just got a new credit card that gives me cash back, a percentage of the money I spend. When I imported the refund transaction into QuickBooks, I was at a loss as to where to put the rebate. A little web research brought up two approaches.