Are atm fee rebates taxable?

[afio]

are atm fee rebates taxable?

[JohnW15 · Accepted solution]

No, they're not.  The rebates basically represent a return to you of your own money.

[esjaybea]

Why would my bank be sending a 1099-MISC for ATM Rebates, if it is not taxable?

[DianeW777]

It depends. If the following statements apply to your situation and the fees are simply being repaid to you for money you were already charged then nothing is taxable. Check with your bank to be sure why you received this rebate.

• A rebate of fees you pay such as ATM fees is just you getting back your own money. As is 'cash back' on credit card purchases.
• ATM rebates are refunds or reimbursements for ATM fees that are credited to a customer's account. Banks track fees charged over a statement cycle and then credit the total back to the customer's account. 

If you are being credited for a rebate and you never paid ATM fees to your bank then it would be considered as miscellaneous income.

1. Open your TurboTax Online/Mobile or TurboTax Desktop tax return
2. Search (upper right) > type 1099misc > click the Jump to... link
3. Begin your entry of the 1099-MISC.
   1. Be sure to select No this did NOT involve work and No it did not involve an intent to earn money
4. Continue to complete this section.

@esjaybea 

[jillguns]

Hello, this situation applies to me, and I entered the form according to your instructions, but it adds to my income for the year.  How do I report the 1099 misc but not pay income tax on it?  Thanks.

[BrittanyS]

Can you clarify if you were charged the ATM fees? 

[archguns]

Yes, each time I use the atm, the fee is added to my withdrawal (for example, a $100 withdrawal with a $4 fee is $104 deducted immediately from my account), and then the fee of $4 is immediately credited back to my checking account.  

[MarilynG1]

You could report the 1099-Misc income as you mentioned, and then go to Other Miscellaneous Income, 1099-A, 1099-C.  On the next page, scroll down to Other Reportable Income.  For Other Taxable Income, say Yes, then enter a description and the amount on the 1099-Misc as a negative number.

You didn't really 'earn' any income, just got repaid for fees you originally paid yourself.

@archguns