Credit card sign up bonus

[bo32792]

I received a $300 sign up bonus from my credit union for signing up for a credit card. In mid December I saw credit added to credit card. Din not receive a 1099. Bank said the bonus was on the January statement so I would get the 1099 for this year. Does this seem correct, I received the funds in December. Thank you.

[LindaS5247]

A cash bonus for a credit card sign-up is generally considered taxable income if it's awarded without requiring any spending. If the bonus requires you to make purchases, it's typically treated as a rebate or discount and is not taxable. 

In general, credit card bonus rewards earned in 2024, even if reflected on your 2025 statement, are generally not taxable income. The IRS typically treats these rewards as rebates or discounts, not as income. This means you won't need to report them on your 2025 tax return. 

The IRS considers credit card rewards (cash back, points, miles) as a form of rebate or discount for making purchases, not as income. 

Depending on how your bonus was designed from your credit card issuer it may not be taxable.