As a result of the shortcoming in Revenue Procedure , the Service issued Revenue Procedure to clarify the treatment for certain advance payments. A gift card is the same as money. I've been wrong before. They charge not only a tax on the card, but a fee.
Otherwise, Pure GCE gets my vote. Good product except the product isn't the best. I've tried a few different brands and this isn't the worst but it's not the best. Personally I would recommend another brand.
May 18, · Nope, no tax on gift cards. As others have said most banks charge a fee on prepaid Visa/Mastercards. There is a tax on phone cards. As to the expiration date there's a new federal law which states any gift card issued after April 16th, and beyond must be valid for a . We take VISA, MasterCard, American Express, and Discover cards with a U.S. billing address. Visa Gift Cards fall into this category. We are unable to accept check, money order, or cash payments. Don't have a card? You can also deduct your fees from your federal tax refund via Refund Processing when you're ready to file. The fee for this optional service is also deducted from your refund. Tax law says that because gift certificates and gift cards are cash equivalents, or easily convertible to cash, they do not meet the requirements to be excluded from income. Furthermore, since the value of the gift card or gift certificate is easily determinable, they must .