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Get your taxes done using TurboTax
What was the bonus for?
In general, a free bonus to sign up for an account is taxable (it's considered interest). The bank does not have to issue a 1099 unless the amount is more than $600. You can report "interest income not on a 1099". For example, a $200 bonus if you open a checking account with at least $10,000 in deposits.
However, account bonuses that require you to perform in a certain way may not be taxable, instead, they may be treated as a discount or rebate. For example, if you get a rewards credit card that pays a reward if you sign up, spend more than $1000 per month for 3 months and make your payments on time, that type of reward is not taxable income.
March 18, 2024
11:23 AM