Credit cards that pay rewards in crypto on dollar purchases, such as a percentage back in Bitcoin.
Card rewards are treated as rebates on purchases, not income, the same as cash-back rewards. The crypto received has a basis equal to its value at receipt and a holding period starting then; selling it later is a capital transaction. Sign-up bonuses that require no purchase are different and are generally income.
Rewards earned on purchases are rebates, not income. Their value at receipt is your basis. Bonuses paid without a purchase requirement are generally income.
Source: Rev. Rul. 76-96 (rebates); IRS Notice 2014-21
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
A confidential consultation. Tell us what you have, and we will tell you what applies and what it costs.
Hourly billing, estimated up front, with a deposit applied to the work.
Fill this out and we will reach out to schedule your consultation.
