I opened a bank account and received $150 as a promotion. Is this taxable income?

[MichaelMc · Accepted solution]

Yes. If you received a cash bonus for opening a checking account, savings account, or similar deposit account, that bonus is interest. The bank should issue a Form 1099-INT at year end and you should include it as taxable income on your income tax return.

[1strategicplanner]

Does the same still apply if a new checking account is opened at a bank, but the bank provides you an account credit instead of cash?

[SweetieJean]

Yes. It is still taxable.

[VolvoGirl]

Yes, sounds like the same thing.  If they credit your account that’s the same as giving you cash.  

[1strategicplanner]

what if I have no other taxable income other than their marketing incentive?

[VolvoGirl]

For 2018 if you are Single you don’t have to file if you made less than 12,000.  Or are you a dependent on someone’s return?

[1strategicplanner]

Yes I am single, 35 and claimed as a dependent on my parent's taxes and insurance.  I understand insurance is separate all together.  This is just a generalized idea for all of us here.

[VolvoGirl]

If your parents claim you as a dependent on their return then you have to file a return if you have only $4,050 or more income.  

[SweetieJean]

or $400 of self-employment income.

[fic1234]

Where do you add the income received from the promotion? Do you add it to your wages in Form 1040?

[linear]

No, it is reported as bank interest.

[fic1234]

thank you. after i add it to the "taxable bank interest" line, how do I change my "refund" to incorporate this

[VolvoGirl]

Huh?  Your refund updates automatically with each entry.  It probably didn't affect your refund or tax due.  

[fic1234]

sorry, i am doing it manually on the 1040 form!