![]() I, for example, use Income:Other Income:Credit Card Rebates, though you could categorize it as whatever kind of income you want. ![]() Either have a general Expenses:Credit Card Rebates category that you always transfer from, or go through all the effort to actually allocate your rebates to the appropriate category based on what you spent on the card, and have appropriate negative expenses in all those categories. So, there are two main approaches to dealing with credit card rebates from a personal accounting perspective: I don't know as the IRS is expecting tracking to that degree, and I'm no tax law expert, but I could see a reasonable argument for it. ![]() One might even expect that if you, for instance, made a charitable donation by that credit card, if it's treated as a rebate, the amount that you could deduct for that donation would be 1% less, since that 1% isn't considered to be an amount you paid due to the rebate. This is, if your credit card offers a 1% rebate on purchases, it can be treated as though just all your expenses are 1% lower, just as if the retailer had been running a 1% sale at the time, which would make the rebate not taxable. See, for example, this blog post from TaxAct which describes some instances where it seems it may be seen as taxable in some cases, though it may just be seen as a rebate or discount (a "negative expense") in others. In the United States in particular, taxability of credit card rebates and incentives is surprisingly not straightforwardly defined. If you're trying to have your accounting match what the tax authorities think about your income, you probably want to treat these payments the same way. The data will be secure, shared only with consent, and there will be traceability.Like for anything with personal accounting, it kind of matters why you're tracking the information. The way Helleboid sees the future, consumers will be able to access all their data - bank data, payment data - in whatever application they choose. “They want all their accounts in there their expectations increase all the time.” “Customers don’t want to type anything,” he said. Helleboid pointed out that as consumers use new apps, they want to be able to do more things with them. I think some folks have seen what's happened in Europe and think it's a government thing.” “There are some first movers, but others have not seen a lot of first-mover advantage. “Because it is kind of a new concept, some folks are not sure what to make of it and are waiting to see what other people are doing,” said Cardinal. The concept of open banking and data sharing has existed for some time and is legally required in Europe, but a relatively small number of U.S. Most will upgrade when they’re doing a technology refresh anyway. For many banks, OFX still works, so they may not rush to change. OFX and FDX are harmonizing their standards and closing the gaps on a few differences, to make FDX the standard. It’s not just used for sharing banking data, but also for sharing information from tax documents such as 1099s, according to Olivier Helleboid, vice president of product and engineering in the Financial Data Services unit at Intuit. OFX has also evolved in the last 20 years. “Unfortunately, we estimate there are probably 45 to 50 million credential pairs out there.”Ĭardinal is referring to the common practice of screen scraping, where consumers give their online banking usernames and passwords to a third party so they can log in as the user and scrape their bank account data. “That's with no mandate, that's just with market forces and people working together,” Cardinal said. Two million consumers use it Cardinal expects 6 million will by year-end. (Cardinal recently came from Bank of America, where he worked for 23 years and co-chaired the FS-ISAC’s working group on data sharing.)įDX supports restful application programming interfaces (APIs) and biometric authentication. “If you were to build OFX today, you’d build FDX,” said Don Cardinal, managing director of FDX, which is a subsidiary of the Financial Services Information Sharing and Analysis Center.
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