I occasionally churn credit cards. Mostly for the sign-up bonuses, but also for the ongoing cash back deals. These sign-up bonuses are not taxable as they’re seen as rebates by the IRS. Last year, we got $750 in sign-up bonuses. It supplemented our meager income during gradschool, and even earned us some free trips.
Here I’ll go over what it is, who should and should NOT be churning credit cards, how to find good deals, and how to analyze if it’s worth it to keep the credit card open, especially if it has an annual fee.