Don't rush to cash out your credit card rewards for a statement credit or cash payment. See another redemption option that may yield more value.

The IRS sees most credit card rewards as rebates rather than income. That's why you don't have to report them on your tax return. This rule applies whether you're earning cash back, points, or miles. A 2024 IRS memorandum explains:

If you have questions about cash advances and how they work, Forbes Advisor Canada explains them in this guide.

When using a credit card is better than paying with cash—and when it's not Are you better off using credit cards or cash? Making purchases with credit cards is often more convenient than paying with cash.

Make the right choice for your financial future by exploring the unique advantages credit cards offer over other payment methods.