On http://rewards.xbox.com/earn/ I have many ways to earn points for doing some specific action. When I use these points to purchase an item from XBOX live will I be charged a sales tax? Or are earned points tax free, when used to purchase something from XBOX live?
I know when I purchase points a tax is levied, but I wasn't sure how they were Microsoft was managing taxes on earned points?
Best Answer
There is no tax associated with these points - once you've earned them, they're in your Live account and can be used at full value. I've been a Rewards member for quite some time now, and I've always gotten the full value of all the points I've earned.
This works the same way if you're a Bing Rewards member as well - you can "cash out" Bing points for Microsoft point cards, and these cards are worth their full face value in Microsoft Points.