Do You Get a 1099 for a Credit Card or Bank Bonus?
This guide explains when a reward triggers a 1099 and when it does not, based on whether you had to spend to earn it.
The spending test
The key question is whether you had to spend money to earn the reward. The IRS generally treats spending-based rewards as a rebate, a discount on your own purchases, rather than income. So a welcome bonus you earned by meeting a minimum spend, and ordinary cash back, are not taxable and do not come with a 1099, as our guide on whether rewards are taxable explains.
When a 1099 shows up
When you receive a bonus without spending anything, it is treated as income. Classic examples are a bank account opening bonus, which often generates a 1099-INT, and referral rewards, which can generate a 1099-MISC. A card bonus given just for opening an account, with no spending required, can fall in this category too.
What to do at tax time
If a reward was taxable, you are responsible for reporting it whether or not a form arrives, since issuers do not always send one for smaller amounts. Keep track of no-spend bonuses and referral payouts during the year, and when in doubt, confirm with a tax professional. Spending-based rewards, the bulk of what most people earn, you can simply enjoy tax-free.
- Spending-based rewards are a rebate, not taxable income.
- Credit card welcome bonuses and cash back get no 1099.
- Bonuses earned without spending are taxable.
- Bank account bonuses and referral rewards can generate a 1099.
- Report taxable bonuses even if no form arrives.
Frequently asked questions
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