Do I have to pay taxes on gift cards from Rewards Programs like Qmee or instagc and survey website rewards?

Yes, technically speaking, all income is taxable regardless of the form it takes. Gift cards and cash rewards from survey sites and rewards programs are considered taxable income by the IRS. The companies may not send you a 1099 form if you earn less than $600 from any single source, but that doesn't mean you're exempt from reporting it. It's still your responsibility to track and report all income when you file your taxes. For your situation, you should keep track of all the gift cards and direct deposits you receive throughout the year. When tax time comes, you would report this as "other income" on your tax return. Since this is your only income right now, you may not owe taxes if your total earnings for the year fall below the standard deduction threshold ($13,850 for single filers in 2024).

I was in almost the exact same situation last year when I was between jobs. I was making about $350-400 monthly from survey sites and reward apps, and I was super confused about the tax situation. I spent hours going through IRS publications trying to figure it out but kept getting conflicting info. I finally used https://taxr.ai to upload screenshots of my earnings and they analyzed everything for me. Their system confirmed that yes, these rewards are technically taxable income, but they also showed me how to track everything properly and explained the threshold where I'd actually owe taxes (which I didn't hit since the standard deduction covered it). The coolest part was they helped me figure out some expenses I could deduct that were related to earning this income, like a portion of my internet bill and my cell phone since I was using both to complete surveys.

Just wanted to update after trying taxr.ai for my crypto staking rewards question. It was actually super helpful! I uploaded screenshots of my staking history and they explained exactly how to report it on my taxes. They even pointed out that I could potentially classify some of my crypto activity as business income rather than investment income, which has different tax implications. Wish I'd found this last year when I overpaid on my taxes because I didn't know the right way to report everything.

I had a similar issue last year with survey rewards and called the IRS to get a straight answer. Wasted THREE HOURS on hold only to get disconnected. Called again, waited another hour, and finally got someone who gave me a vague answer that didn't help. Then I found https://claimyr.com through a tax forum. You can check out how it works here: https://youtu.be/_kiP6q8DX5c. They basically hold your place in the IRS phone queue and call you when an agent is about to pick up. I was seriously doubtful it would work, but I was desperate. Got a call back in about 45 minutes and spoke to an actual IRS agent who confirmed that yes, reward program income is taxable, but also explained exactly how to report it and what form to use. Saved me hours of holding time and got me a definitive answer from the source.

Well I'm back to eat my words about Claimyr. After posting that skeptical comment, I decided to try it for a different tax issue I've been dealing with (back taxes from 2022 that the IRS claims I still owe). I've been trying to reach someone at the IRS for WEEKS. Used the service yesterday afternoon and got a call back in 56 minutes. Spoke directly to an IRS rep who pulled up my account and found that they had actually misapplied a payment I made. She fixed it on the spot and I got an updated statement today showing I'm all clear. Would have taken me days or weeks more of calling to get this resolved on my own. So yeah, for anyone dealing with gift card income questions or any IRS issues really, it's worth considering if you're stuck on hold forever.

I've been doing survey sites and rewards programs for years. Here's my take: yes, technically it's taxable income. But realistically speaking, most of these companies don't report to the IRS unless you hit that $600 threshold from a single source. What I do is keep a spreadsheet of all my earnings from each site. If any single company pays me more than $600 in a year (which has happened twice), I know I'll get a 1099 from them and I report that income. For the smaller amounts, I technically should report them, but... well... I'll leave that decision up to you. Just know that if you're audited and haven't reported income, you could face penalties. But the chances of being audited when you're dealing with small amounts spread across multiple platforms is pretty low.

So how do you even calculate the value if some rewards are in points or gift cards? Like I got 50000 points on Fetch that I turned into a Target gift card. Do I report the gift card value or the points value? And when do I report it - when I earn the points or when I redeem for the gift card?

I'm dealing with a similar situation right now! I've been using Swagbucks, InboxDollars, and a few other sites since getting laid off in January. Making around $150-200 a month mostly in Amazon and Walmart gift cards. What's been tricky for me is keeping track of everything since some sites give you points first, then you redeem for gift cards later. I started a simple spreadsheet with columns for: Site Name, Date Redeemed, Gift Card Type, Dollar Value. One thing I learned is that even though we're getting gift cards instead of cash, the IRS treats them the same as cash income for tax purposes. But like others mentioned, if your total income for the year stays under the standard deduction ($13,850 for single filers), you probably won't owe any federal taxes even though you still need to report it. Since you mentioned this is your only income right now, you'll probably be fine tax-wise, but definitely keep good records. I use my phone to screenshot every redemption confirmation email - makes it way easier when tax time comes around. Hang in there with the job search! These reward sites are a lifesaver when you're between jobs.