Credit Card Churning for Non-Taxable Income — Anyone Besides Me?

Discussion in 'General Chat' started by GBB, Jun 27, 2021.

    1. GBB

      GBB Member Hall of Fame

      Location:
      NYC
      Tinnitus Since:
      2016-2019 (Mild, Cured) 8/2020 (Severe)
      Cause of Tinnitus:
      Virus / Microsuction / Acoustic Trauma
      I don't want this to come off as too sales-y, but I churn cards as a way to generate non-taxable income (reward points are not taxed). Churning in this context means signing up for a card and then meeting some optional spend requirement (e.g. $4,000 USD in 3 months), in order to get a signup bonus (e.g. $1,000 USD).

      I just signed up for the Chase Saphire Preferred card as the bonus is now at an all-time high, literally the highest it has ever been, and I believe this is not just an all-time high for Chase, but for any credit card ever. If you google this you'll see blog posts about it — it's kind of a big thing in the microcosmic credit card world. The redeemable value on Amazon is $1,000 or for air travel is $1,250, and the annual fee is $95, so you net $900-$1,100 depending on what you redeem the points for.

      I have literally waited years to sign up for this card until the bonus increased to a new all-time high, and credit card reward points are non-taxable, meaning this is literally a free $1,000 if you meet the spending requirement of $4,000 in 3 months. I plan to use mine to purchase a fanless MacBook so my ears are not aggravated by PC noise :)

      Just making a PSA as especially with tinnitus and hyperacusis and inherently less financial stability, it has become harder for me to rationalize purchasing nice things, so having little mechanisms like this let me spend with less guilt.

      I would *not* recommend this to anyone who cannot pay their credit card in full each month or who does not have strong credit. However, it's a cool side thing if neither of those criteria apply to you. If anyone else churns or has question about it in general, happy to discuss or answer what I can.
       
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