How to report bank bonuses on your tax return

A line-by-line walkthrough of where a bank or brokerage bonus goes on a federal return — whether it arrived on a 1099-INT, a 1099-MISC, or no form at all.

Whether a bonus is taxable is settled: cash paid to you for opening or funding an account is ordinary income in the year you receive it. (Our tax implications guide covers why.) The practical question at filing time is where it goes. That depends mostly on which form, if any, the institution sent you.

If the bonus is on Form 1099-INT

Banks often report deposit-account bonuses as interest. The bonus will usually be included in Box 1 (interest income) together with any regular interest the account earned.

• Where it goes: taxable interest on Form 1040, line 2b.
• Schedule B: if your total taxable interest for the year is more than $1,500, you also list each payer on Schedule B, Part I.
• Don't add it twice. If the bonus is already inside Box 1, enter the form as issued. Reporting the bonus again separately double-counts it.
• Box 2 (early withdrawal penalty): if you broke a CD, the penalty shown here is deductible on Schedule 1, line 18 — see CD early withdrawal penalties.

If the bonus is on Form 1099-MISC

Checking, brokerage and larger promotional bonuses are often reported as "Other income" in Box 3 of Form 1099-MISC. Brokerages frequently include this as a section of their consolidated 1099.

• Where it goes: Schedule 1 (Form 1040), line 8z, "Other income," with a short description such as "bank promotional bonus." The Schedule 1 total flows to Form 1040.
• Not self-employment income. A sign-up bonus on a personal account is generally not earnings from a trade or business, so it shouldn't be entered on Schedule C or be subject to self-employment tax.
• Tax software tip. When you enter a 1099-MISC with an amount in Box 3, most programs ask whether the payment relates to your work or a business. For a personal bank or brokerage bonus, the accurate answer is normally no — answering yes can route it to Schedule C and add self-employment tax.

If you didn't receive a form

Missing paperwork doesn't remove the obligation. Institutions generally only have to issue a 1099-INT once interest reaches $10 for the year, and a 1099-MISC once payments reach the reporting threshold — $600 for payments made through 2025, and $2,000 for payments made after December 31, 2025 under the July 2025 tax law, with inflation indexing scheduled to begin in 2027. A $300 checking bonus paid in 2026 and booked as miscellaneous income may therefore arrive with no form at all.

In that case:

1. Check the institution's online tax-documents page before assuming nothing was issued. Forms for 1099-INT and 1099-MISC are generally due to recipients by January 31; brokerage consolidated statements often arrive in mid-February.
2. Find the amount and date on your statement. Note how the bank described the credit (for example "bonus interest" versus "promotional credit").
3. Report it consistently with that description: interest-type bonuses with your other interest (Form 1040, line 2b), and other promotional payments as other income (Schedule 1, line 8z). Both are taxed at ordinary rates; if you are unsure which line fits, ask a tax professional.
4. Keep the statement with your tax records. Our record-keeping guide covers what to save.

Special situations

Bonuses paid in something other than cash

A gift card, merchandise or other non-cash reward for opening an account is generally taxable at its fair market value. Banks sometimes report these on a 1099-MISC or 1099-INT at a stated value.

Bonuses on business accounts

A bonus paid on a business checking account belongs to the business. For a sole proprietor that generally means business income on Schedule C; for an LLC taxed as a partnership or corporation, it is income on the entity's return. It is not reported again on the owner's personal return as other income.

Bonuses paid into an IRA

A bonus credited inside an IRA is generally treated as part of the IRA and is not reported as current income. A bonus paid to a linked taxable account is reported like any other bonus.

Joint accounts

The 1099 is usually issued under the primary owner's taxpayer ID. If you file separate returns from a joint owner, talk to a tax professional about how to report each person's share.

Clawed-back bonuses

If a bank reverses a bonus in the same tax year, the form should reflect the net amount. If the bonus was taxed in one year and clawed back in a later year, the treatment is more complicated; document the dates and amounts and get professional advice if the amount is significant.

Wrong or missing taxpayer ID

If the institution doesn't have a correct Social Security number on file, it may be required to apply backup withholding (currently 24%) to reportable payments. Confirm your tax details when you open the account.

A simple year-end checklist

• List every bonus received in the calendar year from your offer tracker.
• Match each to a 1099-INT, a 1099-MISC, or "no form."
• Ask for a corrected form if an amount is wrong.
• Report each bonus once, on the line that matches its form or description.
• Set aside money for state income tax if your state has one.

The full pre-filing routine is in our bank bonus tax prep checklist.

Frequently asked questions

Where do I report a bank bonus on my tax return?

If it is on a 1099-INT, it is included in taxable interest on Form 1040, line 2b (with Schedule B if total interest exceeds $1,500). If it is on a 1099-MISC in Box 3, it goes on Schedule 1, line 8z as other income. Line numbers can change between years, so check the current instructions.

Is a bank bonus reported on a 1099-MISC subject to self-employment tax?

Generally no. A promotional bonus on a personal account is not business income. When tax software asks whether a 1099-MISC Box 3 payment is related to work or a business, the accurate answer for a personal bonus is normally no.

Do I have to report a bank bonus if I did not get a 1099?

Yes. The reporting thresholds ($10 for 1099-INT; $600 through 2025 and $2,000 for 2026 payments for 1099-MISC) only decide whether the institution must issue a form. The income is taxable either way.

Can I get a tax form for my bonus from the bank?

Check the bank's online tax-documents section after January 31. If no form was issued because the bonus was below the threshold, the bank may not be able to produce one; your account statement documents the amount.

Is a bonus on a business bank account business income?

Generally yes. It is income of the business and is reported on the business's return (for a sole proprietor, Schedule C), not as personal other income.