Is a cash advance from a credit card considered income on a tax return?

Would a cash advance (in the form of a “purchase check” written to cash and deposited) be considered as income on my 2008 tax returns?




6 Comments to “Is a cash advance from a credit card considered income on a tax return?”

  1. Ryan M Says:

    No because you have to pay it back. That is like saying “Is a mortgage that you take out to buy a home considered income?” They are treated the exact same.

  2. bostonianinmo Says:

    No, since it is a loan that has to be repaid. Now, if you didn’t repay it and the lender forgave the debt, THEN it would become income.

  3. Pixil Says:

    No and it is not the same as a mortgage. Mortgage interest is tax deductible. Interest on a credit card is not.

    Either way it is a loan not income.

  4. Doctor Deth Says:

    no – it’s debt, not income

  5. SmartA$$ Says:

    No because it is a loan that you have to repay.

    If you don’t pay your credit card bill and the credit card company gives up on collecting and cancels the debt, then they will issue you a 1099 form which makes the canceled debt become taxable income, but that typically doesn’t happen until the account goes unpaid for several years.

  6. Judy Says:

    No, it’s like any other type of loan, and is not considered as income.