Please read the following and note you can always choose to report a 1099 that you didn't receive.
The facts and circumstances of the specific reward program generally dictate whether the financial institution has to send Form 1099-INT (1099-INT) or Form 1099-MISC (1099-MISC) to the IRS and reward recipients. Cash payments in respect to deposits are clearly interest income.
Cash gifts in excess of the 1099Int reporting requirements should be reported by your financial institution (current threshold limit is $10). But often they give non-cash gifts such as gift cards.
Assuming the noncash gifts are not de minimis, as described below, the bank would have to issue a 1099-INT to the IRS and the recipient.
Certain de minimis premiums excluded
Certain incentives that do not meet the definition of a nontaxable rebate can, nonetheless, avoid the reach of the 1099-INT requirements. The exception covers certain de minimis, noncash inducements offered to depositors who open a bank account. However, two criteria confine its scope:
- The exception is only applicable to noncash benefits
- The value of the incentive must be less than $10 for a deposit of less than $5,000, or less than $20 for a deposit of at least $5,000
Even so, for applicable de minimis, noncash amounts, the ruling benefits both the bank—by alleviating the Form 1099 filing requirement, and the taxpayer—by allowing the benefit to be excluded from gross income on the taxpayer’s return.
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question
**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.
