I received a 1099-MISC from my bank. My checking account has the following feature:
"2.50% cashback on up to a total of $800 of debit card purchases. To receive monthly rewards, you must make at least 12 debit card purchases and have at least one ACH credit, such as direct deposit, that will post and settle to the account during the monthly cycle."
I received a 1099-MISC for 2022 with $207.47 in Box 3.
I'm trying to do my taxes and TurboTax Online is asking all sorts of questions about business name, accrual method, and material participation. This is NOT a job.. I'm very confused with these questions.
Since they reported it in Box 3, they are treating it as Other Income (rather than Interest or a Rebate)
You will need to add it to income, but it shouldn't be treated as Self-Employment.
Go back and edit the screens for the 1099-MISC
(Or delete it and start over)
Enter Incentive as the reason for the 1099
Select "This was a manufacturer's incentive payment"
Continue
This will be reported as Other Income on Schedule 1 line 8 and flow to your 1040 Line 8.
More information about Credit Card Rewards
Since they reported it in Box 3, they are treating it as Other Income (rather than Interest or a Rebate)
You will need to add it to income, but it shouldn't be treated as Self-Employment.
Go back and edit the screens for the 1099-MISC
(Or delete it and start over)
Enter Incentive as the reason for the 1099
Select "This was a manufacturer's incentive payment"
Continue
This will be reported as Other Income on Schedule 1 line 8 and flow to your 1040 Line 8.
More information about Credit Card Rewards