How to deal with the business credit card cash reward on business tax return?

[workhard2022]

Hello,

I have an LLC and I filed form 1120-S for it.  I received a $1,000 cash reward from my business Bank of America card this year. Not sure what's the best way to handle this $1,000 cash reward on form 1120-S. Can I not enter this $1000 cash reward on form 1120S?   or Is it better to count it into "other income" which makes it taxable?

Thank you for sharing your wisdom!

[ajcctax]

I will make the entry: Credit: other income Debit: cash in bank

[sjrcpa]

You used the card for business, incurring deductible business expenses, right?

So when you get this $1,000 it is a refund of some of what you paid. Taxable income.

[BobKamman]

You probably had to spend something to qualify for the sign-up bonus, but there's no definite connection between deductions for what you spent and the $1,000.  You could have met the spending limit in December 2023, then received the reward in January 2024 and canceled the card in February 2024.  Report it as "other income," but are you sure the bank is not issuing a 1099 to your SSN?  (They have another week to do that, you know.)