An image forming apparatus according to an embodiment includes a decoloring unit for performing decoloring processing on an image formed on a sheet using decolorable material. An image forming unit forms an image on the sheet using decolorable material. A reuse tray receives a sheet provided by a user. A processor determines whether a sheet is provided on the reuse tray based on the signal from the sensor. When it is determined that a sheet is provided on the reuse tray, the decoloring unit performs the decoloring processing on the sheet, and the image forming unit forms an image on the sheet that was subject to the decoloring processing. When the image forming unit forms an image on the sheet that was subject to decoloring processing, a rewards account of the user is updated.