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 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 2023: when forms become available, which banks don’t send out 1099s, which earnings are supposed to be reported on the form 1099, referral bonus discussion, and any other weirdnesses that happen.
I’ll add in below any specific tidbits that catch my eye, and we’ll likely 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.
IRS change: Thus far the most interesting thing that happened is that the IRS is delaying the $600 reporting requirement. For 2023 they’ll use the old $20,000 amount, and for 2024 they’ll begin the transition by lowering the threshold to $5,000. 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, (though they still might ask you for verification documents).
To be continued…
See prior posts for many specific details on what happened then and for general guidance as well:
Which Banks Send Out Tax Form 1099? (Discussion Post for 2022 Tax Forms)
Which Banks Send Out 1099s for Account Bonuses? (Prior Years)
Do Banks Send 1099s for Referral Bonuses? (2017)
My Thoughts on Taxes for Miles, Points, and Cash Back (General Thoughts)