My brokerage paid me $225 if I transfer certain amount of money to my account on their platform. I did and received the bonus. Is it taxable? If so, how can I report it?

[anonymous8]

This brokerage send me all needed 1099s, but there is no mention of $225 I received from then in exchange for transferring money from other account into theirs.
Is it taxable?
If it is, how can I report it in Turbo Tax?

[JohnB5677]

A brokerage bonus or promotion is typically treated the same way as interest earned in the account. If the account is a regular taxable account, the bonus will be taxable. I expect at the year-end 1099-INT will include this bonus.  If it does not you should post it as interest.

You can enter your 1099-INT manually.

• Go to Wages & Income

• Work on other income

• Investments and Savings

• Interest on 1099-INT

• Add Investments Or select 1099-INT

• Relax. We got it. = Continue

• Let's import your tax info = Enter a different way

• OK, let's start with one investment type = Interest = Continue

• Type it myself

• Enter your new information.

If the account is a traditional IRA, there won’t be a 1099 and therefore it won’t be taxable in the current year. But because the bonus stays in the IRA and it grows tax-deferred, eventually when you withdraw the money after you retire, the money will be taxable at that time.