topic Huh? Your refund updates automatically with each entry.... in Retirement tax questions

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

mstars76 — Tue, 04 Jun 2019 00:15:31 GMT

Yes. If you received a cash bonus for opening a checking...

MichaelMc — Tue, 04 Jun 2019 00:15:33 GMT

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.

Does the same still apply if a new checking account is op...

1strategicplanner — Tue, 04 Jun 2019 00:15:34 GMT

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?

Yes. It is still taxable.

SweetieJean — Tue, 04 Jun 2019 00:15:36 GMT

Yes. It is still taxable.

Yes, sounds like the same thing. If they credit your acc...

VolvoGirl — Tue, 04 Jun 2019 00:15:37 GMT

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

what if I have no other taxable income other than their m...

1strategicplanner — Tue, 04 Jun 2019 00:15:39 GMT

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

For 2018 if you are Single you don’t have to file if you...

VolvoGirl — Tue, 04 Jun 2019 00:15:41 GMT

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?

Yes I am single, 35 and claimed as a dependent on my pare...

1strategicplanner — Tue, 04 Jun 2019 00:15:42 GMT

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.

If your parents claim you as a dependent on their return...

VolvoGirl — Tue, 04 Jun 2019 00:15:44 GMT

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.

or $400 of self-employment income.

SweetieJean — Tue, 04 Jun 2019 00:15:45 GMT

or $400 of self-employment income.

Where do you add the income received from the promotion?...

fic1234 — Tue, 04 Jun 2019 00:15:47 GMT

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

No, it is reported as bank interest.

linear — Tue, 04 Jun 2019 00:15:48 GMT

No, it is reported as bank interest.

thank you. after i add it to the "taxable bank interest"...

fic1234 — Tue, 04 Jun 2019 00:15:50 GMT

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

Huh? Your refund updates automatically with each entry....

VolvoGirl — Tue, 04 Jun 2019 00:15:52 GMT

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

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

fic1234 — Tue, 04 Jun 2019 00:15:53 GMT

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

Then redo the math on all the lines.

VolvoGirl — Tue, 04 Jun 2019 00:15:55 GMT

Then redo the math on all the lines.

Re: Yes. If you received a cash bonus for opening a checking...

aasswwiinn — Fri, 17 Jan 2020 22:23:54 GMT

Does it apply for credit card bonus as well? It was credited in my statement.

Re: Yes. If you received a cash bonus for opening a checking...

AlanT222 — Mon, 20 Jan 2020 18:03:02 GMT

No, credit card statement credits are not taxable. The IRS will treat the statement credit as a discount and not interest earned.

Re: Yes. If you received a cash bonus for opening a checking...

phxjoe — Wed, 23 Mar 2022 19:54:07 GMT

follow up to this question. What if the terms on the bonus are not met and they revoke the bonus but you already had to claim the bonus as interest? Is the financial institution obligated to send a corrected 1040?

Re: Yes. If you received a cash bonus for opening a checking...

Vanessa A — Wed, 23 Mar 2022 21:14:27 GMT

Yes, they are correct. They do not need to send you any type of tax documents for the correction.

If they revoke the bonus that you already claimed on your return, you would take the following steps:

Federal
Income
Show more next to Misc Income
Start next to Other Income
Start next to Other Miscellaneous Income
Enter your interest that you paid back as a negative amount with a description of interest repaid.