Referral Bonuses – Revolutionizing Your Journey

Are Credit Card Points Taxable? A CPA Explains What the IRS Actually Cares About with Rachel Earl (Ep. 75)

By Bakir Djulic | May 21, 2025

Are your points and miles taxable?

In this episode, host DeAndre Coke is joined by CPA Rachel Earl to demystify the often-confusing world where travel rewards and taxes meet. They unpack how the IRS views points earned from credit card sign-up bonuses, referral links, and cashback programs, and clarify when travel rewards might be considered income.

The conversation also dives into smart tax planning strategies that can earn you valuable points—like paying estimated taxes by card—and covers key insights around bank bonuses, QuickBooks tracking, and business credit card usage. Rachel shares her professional insights as well as personal travel tips, offering a rare intersection of finance, strategy, and wanderlust. This episode is a must-listen for anyone looking to navigate the financial side of travel rewards with more clarity and confidence.

Key Highlights:

Points vs. taxes: Points and miles from sign-up bonuses are not taxable, but referral bonuses may be.
IRS guidance: Current IRS rulings on this topic haven’t been updated since 2002.
Cashback simplicity: Cash back is generally not considered taxable income.
Credit card usage: Personal cards can be used for business expenses with proper documentation.
IRS priorities: The IRS does not track individual cardholders or card usage patterns.
Bank bonuses: These are reported on 1099-INT forms and are treated as interest income.
W2 caution: W2 employees should be careful when opening a business entity for points purposes.
Estimated tax payments: Can be used to earn points, but risks and limits apply—especially in states like California.
Record-keeping: QuickBooks or other tracking tools help streamline expense categorization.
Wanderlog for travel: A useful tool for organizing travel plans and expenses.

This episode is sponsored by Saily. Use Code BOLDLYGO for a 15% discount

Resources:

BoldlyGo Travel With Points & Miles Facebook Group

Interested in Financial Planning?

Truicity Wealth Management

Some of Our Favorite Tools For Elevating Your Points & Miles Game:

Note: Contains affiliate/sponsored links

Card Pointers (Saves the average user $750 per year)
Zil Money (For Payroll on Credit Card)
Travel Freely
Point.me
FlightConnections.com
Thrifty Traveler Premium
LTH Online Points & Miles In Depth Course:
- Use coupon code “BOLDYGO” for a 50% discount!

CPA’s Footnotes:

https://www.irs.gov/pub/irs-drop/a-02-18.pdf
https://www.thetaxadviser.com/issues/2021/may/credit-card-rewards-purchases-gift-cards/ (Interesting Tax Court case about how a couple redeemed points and what the Court considered taxable income)
https://www.irs.gov/pub/irs-wd/202417021.pdf (This is for those who want to get really nerdy about tax and points)
https://www.irs.gov/newsroom/questions-and-answers-on-the-net-investment-income-tax (Resource for those that may want to know more about Net Investment Income Tax)

Connect with DeAndre Coke:

Connect with Rachel Earl:

Instagram: viachoremtax

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Honeymoon Hacks: How to Maximize Points and Miles for a Luxury Getaway (Ep. 43)

By BoldlyGo | October 9, 2024

Ever wonder how to plan a luxurious honeymoon without spending a fortune?

In this episode, DeAndre Coke is joined by Elliot Rosenberg, founder of Hack My Honeymoon, to share insider tips on using points and miles to plan luxury honeymoons without breaking the bank. Elliot talks about how his journey into the points and miles world led to the creation of Hack My Honeymoon, a service that helps couples pick dream destinations, develop points-earning strategies, and book flights and accommodations. He highlights the key benefits of using points for honeymoons, offering expert advice on flexibility in choosing travel dates, maximizing referral bonuses, and leveraging hotel loyalty programs. Whether planning to DIY your honeymoon or work with a service, Elliot’s insights on earning and redeeming points can turn your honeymoon into a five-star experience without the five-star price.

Tune in to learn the strategies behind using points and miles to craft the honeymoon of your dreams, from destination selection to wedding expense hacks!

Key Highlights:

Luxury for Less: Using points and miles can make even the most extravagant honeymoons affordable.
Hack My Honeymoon Services: Elliot’s company guides couples in planning their honeymoons with customized points-earning strategies.
Set Your Goal: Know your travel preferences and set clear objectives to maximize points-earning opportunities.
Transferable Points Are Key: Points from Chase, Amex, and Capital One offer the most flexibility for earning and redeeming.
Leverage Small Business Cards: Opening business credit cards can unlock higher earning potential and additional benefits.
Referral Bonuses: Referring your partner as ‘player two’ to maximize rewards.
Wedding Expenses as a Points Strategy: Use credit cards for wedding costs to earn points, but make sure the fees are worth it.
Hotel Loyalty Programs Matter: Participating in hotel loyalty programs and negotiating with event coordinators can earn additional points.
Start Early: Get a head start on earning and consult with experts to navigate the complexities of points and miles.
And much more!