Easy Tech TutsHow to Categorize Credit Card Rewards in QuickBooks Easily 2026
By Impran M N
Cash back and rewards points from a business credit card need a home in your books, even though they aren't typical income or expenses. This guide explains how to categorize credit card rewards in QuickBooks.
01Decide how rewards should be categorized
Determine whether the reward will be treated as other income or as a reduction to the related expense, based on your accountant's preference.
02Set up a rewards account if needed
Create a dedicated account for tracking credit card rewards if you want them visible as their own line item.
03Record the reward transaction
Enter the reward as a deposit or credit, assigning it to the account you've set up.
04Reconcile the entry
Match the recorded reward to the statement credit or deposit shown on your credit card statement.
Frequently asked questions
Are credit card rewards taxable income?
This can depend on how the rewards were earned and your business structure, so it's worth checking with an accountant.
Should rewards reduce an expense or count as income?
Both approaches are used in practice; the right choice often depends on your bookkeeping preferences and accountant's guidance.
How do I record rewards redeemed for a statement credit?
A statement credit can be recorded as a credit against your credit card account balance.
Can I track rewards separately from regular transactions?
Yes, setting up a dedicated account makes it easy to see total rewards earned over time.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
