Are Bank Bonuses Taxable? (2026 Guide)
Last reviewed 2026-11-02 (ET). This is general information, not tax advice.
The short version: Yes. Cash bonuses from bank accounts are generally taxable income. They're usually treated as interest and reported on Form 1099-INT. Some brokerage and promotional bonuses are reported on Form 1099-MISC instead — for example, SoFi's terms say its bonus may be reported on 1099-MISC. You owe tax on the bonus even if you don't receive a form.
How each type is usually reported
| Bonus type | Usual form | Treated as | Source |
|---|---|---|---|
| Checking/savings cash bonus | 1099-INT | Interest income | IRS 1099-INT/1099-OID instructions; e.g. U.S. Bank says its bonus is reported on 1099-INT |
| Brokerage cash bonus | 1099-MISC or 1099-INT | Other income / interest | Varies by firm — check the offer terms |
| Free stock bonus | 1099-MISC (fair market value) | Other income; cost basis = value received | Check the broker's terms |
| Credit card sign-up rewards (spend-based) | Usually not reported | Usually treated as a rebate | General industry practice (not IRS guidance) |
Reporting thresholds
Banks generally issue a 1099-INT when the interest they paid you, including bonuses, hits $10 (per IRS 1099-INT instructions; verify the current year). The 1099-MISC threshold for other income is set by the IRS and recently changed by law for some years — check the current 1099-MISC instructions. These are reporting thresholds only. Smaller amounts are still taxable.
When you'll get the form
Usually by January 31 (typical recipient deadline) for the year the bonus was paid. That's the year it was paid, not the year you opened the account.
State taxes
Most states tax interest income too. Rules vary by state; check your state revenue department.
Keep records (template)
| Bank | Date opened | Bonus amount | Date paid | Form expected | Received? | Date closed |
|---|---|---|---|---|---|---|
Is it still worth it?
Usually, yes. A $300 bonus taxed at a 22% bracket still leaves about $234 after federal tax (example only). Factor in fees and the interest you give up on money held for the bonus.
FAQ
I didn't get a 1099. Do I still report it? Yes, generally all income is taxable whether or not you receive a form. Does an early-closure fee reduce my taxable bonus? It depends on how the bank reports it. Keep the fee record and ask a tax professional. Do I have to report stock bonuses? Yes, usually at the fair market value when you received the shares.
Not tax advice. Consult a tax professional. — Disclaimer · Affiliate disclosure