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The Deal
- Save 10% when redeeming Swagbucks for Home Depot gift cards.
- Direct link to offer.
Key Terms
- Expiry date unknown.
Tips & Ideas
This offer comes around every so often. You can redeem Swagbucks for cash via PayPal, but this deal can be worth it if you’re able to resell Home Depot gift cards at greater than 90% as that means you’ll be making a slight profit. PayPal also seems to be issuing 1099-Ks for Swagbucks redemptions nowadays, so cashing out Swagbucks via these Home Depot gift cards might be preferable even at a break even rate for reduced tax hassles. Update: Per the link escot shared in the comments, it seems like you might get a 1099-K when redeeming Swagbucks for gift cards too.
If you use a VPN, be sure to turn it off before redeeming Swagbucks. If you don’t, they’ll lock your account which means you have to message them and wait a few days for the restriction to be lifted, at which point this deal might have ended.
Past Deals
- April 12, 2021-???
- May 2, 2020-???
- December 8, 2019-???
Did you receive a 1099-K form from Swagbucks for last year?
eeee gads, I’d forgotten about this killer nightmare…. no, I didn’t, but didn’t do more than $600 in “redemptions…..” Seems truly pathetic. (will become a major killjoy for buying the gc’s via mygiftcards+ if we now must worry about getting a miserable 1099K for redemptions on transactions that likely will be little more than breakeven. (save for the monthly $25 Wmt/Amazon redemptions at 12% off)
Did you get one ? If so, how do you or others report / handle it? How about the cost basis for each “redemption?” What an utter poor use of time
Here’s the most unhelpful swagbucks guide to this: https://help.swagbucks.com/hc/en-us/articles/360049700471-Taxes
So Stephen, or anybody, will we be subject to this if our sole activity to earn the “swagbucks” came from “shopping” via mygiftcards+?
(not helping is swag’s copout note that taxes are complicated, and so, who cares if we the swag don’t tell you anything ?)
Interesting – that guide states that gift card redemptions count towards the IRS $600 guidelines, but not PayPal. I don’t think that’s correct because my wife got a 1099-K from PayPal relating to Swagbucks redemptions.
I’m not sure if you’ll get a 1099-K from buying gift cards from MyGiftCardsPlus. It might depend on how you redeem the Swagbucks, but it seems like you might get one no matter how you cash out. As for how to handle it, that really is one for tax professionals.
Correction. My question was meant to ask if you received 1099-K not from Swagucks, but from PayPal for redeeming SBs towards a PayPal credit.
My wife did
So, then all mygiftcardplus.com GC deals that earn SBs or MyPoints and when redeemed for PayPal credit, will result in a 1099-K tax form if it exceeds $600 per year?
Possibly, but I don’t know for sure.
Hi Stephen, I read the link shared by escot. One example at the bottom says if one earn most SB from shopping, playing Gambit, buying SB, etc., even if they redeem $2,000 in a calendar year for Amazon and Visa gift cards, they won’t be sent the tax form, since those SB earning activities ARE NOT classified as taxable.
So I think this means whether we will receive the tax form depends on whether the SB earning activities ARE classified as taxable or not.
My wife received one from PayPal and I think it was from buying SB.
I think the distinction is that a 1099-K was generated by inflows to paypal regardless of the source.
Swagbucks FAQ says that points earned from Discover, Offers, and Shopping are not taxable activities because the points you earn constitute rebates that you can only get from making purchases.
It is interesting that buy SB is on the non-taxable list because that is not a 3rd party activity, however, you could position that as a break even or net loss activity if you are paying more than $20 to get 2000 SB, which I imagine people only pay more than 1:1 to fill out swago boards.
The taxable activity earnings like sb live, watch, answer, registration are taxable because a purchase is not required to generate the points therefore those are viewed as compensation and not rebates.
Finally, the existence of a 1099-K does not necessarily mean that you owe tax on that money. It is simply a notification of a flow of money to the IRS. You and/or your accountant have the ability to show the source of that flow of money and demonstrate that some or all of it does not represent taxable income.
The special monthly discount of 12% for this prize will be available to you again next month.