[Update 3/28/23: Added a bunch of things below. Reposting now since Public sent out corrected form 1099s now with the bonus included there, along with some other minor (for me) changes. You can find it here.]
January and the ensuing months are Form 1099 season! Each year there are interesting developments that happen with regards to banks issuing form 1099s for interest, bank bonuses, referral bonuses, etc. Remember that time when Chase considered 500 Ultimate Rewards points as $500 on the Form 1099? I digress.
Most of the standard tax forms we’ll receive by the beginning of February since banks are required to send them out by the end of January. There are also a few tax forms which are sent out in later months.
The comments here are a dedicated discussion post where we can discuss all things related to tax form 1099 for year 2022: when forms become available, which banks don’t send out 1099s, which earnings get the form 1099, referral bonus discussion, and any other weirdnesses that happen.
I’ll add in any other interesting tidbits and possibly republish this post as things develop on the 2022 tax forms end. If there is a significant story we’ll publish that separately as well.
Note, receiving a tax form or not receiving one has no bearing on your actual tax liability. This discussion is just to inform people on what to expect, when to look out for a form, check for any mistakes, remember to report something from a bonus that isn’t getting a tax form, etc. Consult a tax advisor about actual tax liability.
Public sent out corrected form 1099s now with the bonus there as a 1099MISC. You can find the tax form here. I also see some other minor changes in things like Dividends on the form.
Hudson Valley Credit Union is planning on re-issuing their 2021 1099 to report the $750 checking bonus offer which was not reported in 2021. This means that you’ll have to re-file your 2021 with an amended tax return. Oh my! They’re providing a $50 Visa gift card for the inconvenience. (This was reported by reader William)
Capital One 1099 for referrals; strangely they even count the $300 Venture travel credit and $100 TSA/GE credit on the 1099
IRS change: Thus far the most interesting thing that happened is the IRS delaying the $600 reporting requirement. This hopefully means that Paypal, Venmo, shopping portals, etc will NOT send out reporting forms to those of us who are under $20k/200 transactions.
Chase is sending out 1099s for referral bonuses $600 or more (I believe they combine all cards together to get the $600 total).
Chase is sending some people a 1099 for retention bonuses.
Morgan Stanley: Readers report that the $695 engagement bonus from Morgan Stanley got a 1099. Readers note an interesting thing that Morgan Stanley does deduct any fees paid from the 1099 (e.g. if you paid one month $55 fee, you’ll get a 1099 for $640).
American Express referrals 1099s received (presumably only for those with more than $600?)(data point on $550 1099)
American Express Business checking: Reports indicate that American Express did not add Membership Rewards bonuses of less than $600 which were earned on the Amex business checking account. (Note: it might be that Membership Rewards bonuses of $600 do get reported.) Of course cash interest will always be reported on a form 1099-INT. Others report GETTING a 1099-INT for Membership Rewards points valued at 1 cent per point (even though they only cashed it out at .8 cents per point). Interestingly, the bonus came as a separate 1099 in the mail, not downloaded, so maybe the prior reporter who did not get a 1099 for their MR bonus will still be getting something in the mail. Another confirmation
I can confirm that cash signup bonuses on the Amex business checking account are reported on the 1099 alongside the interest income (my signup bonus was for $300 cash).
I can also confirm that cashing out Membership Rewards points via the Amex business checking account does not get reported on the 1099-INT. (I cashed out $20 as a test.)
PNC: a report of them not putting the cash bonus on the 1099-INT form; only interest is showing there.
Truist is reporting the bonuses as 1099-MISC, not 1099-INT (even for less than $600)
Live Oak 1099 does not report the bonus, just the regular interest.
Albert sends the 1099-INT for bonus in the e-mail only (as a secure emailed document link which you have to click on to download); when you login to your account and look under the Tax documents it will NOT be there.
Albert sends out 1099-INT for interest and a separate 1099-MISC for referral bonuses.
Fidelity did not include the bonus (I suppose it’s counted as 1099-MISC and since it’s under $150 they didn’t have to include it).
Plynk did not include signup bonus or matching bonus (again, it’s likely 1099-MISC fodder and they don’t need to send the info to IRS when it’s less than $600)
Elements included debit card spend promos on the 1099
Wells Fargo $1,500 bonus is getting a 1099, as expected
Citi did not include referral bonus
Merrill sent 1099-MISC for $1k bonus
SoFi included in their 1099 the direct deposit bonuses
SouthState Bank stated they would not issue a 1099 for the $200 checking bonus
U.S. Bank 1099 for the $700 merchant processing bonus
Bank of America from Reddit: Got a 1099-C from BoA for “discharged debt” related to a SUB for an alaska biz that I met min spend on, then had a few refunds for later in the year. Apparently since I didn’t “earn” the reward, they’re considering the points I received discharged debt.
Upgrade will reportedly only 1099 bonuses above $600. People are receiving them in the mail for referrals, not for any signup bonus.
Oxygen Bank weird 1099 math here and here; data point on corrected 1099 form here.
Titan 1099 can be found in the app
Read: See this post from prior years with information on select banks that don’t issue a tax form and many other interesting tidbits, all of which may-or-may-not still be the case. Hit the comments below and let us know!
Which Banks Send Out 1099s for Account Bonuses?
My Thoughts on Taxes for Miles, Points, and Cash Back
Do Banks Send 1099s for Referral Bonuses?