Besides the huge cash bonuses, Chase recently started offering Ultimate Rewards points bonuses for checking accounts. That’s for their new offering, Chase Sapphire Banking. The current bonus is 60,000 Ultimate Rewards points, and we saw the same bonuses last year. For those who already received a bonus in 2018, Chase is sending out Forms 1099INT. That was expected, since all bank bonuses are considered interest. What we didn’t know, was the valuation of Ultimate Rewards purposes for tax purposes.
Now we have the answer. Chase has valued each Ultimate rewards point earned through these bank bonuses at 1 cent. That’s as good as we could hope for.
Chase is sending out 1099-INT forms, which are sent out if you received interest income from a CD, or from a deposit account.
Another form that you might see from banks like Citi is the 1099-MISC. This is the form that independent contractors receive from those who have paid them. If you work as a freelancer, you will receive a 1099-MISC form showing what you were paid. However, if a payer hasn’t paid you at least $600 in the past year, you might not get a 1099-MISC – but you still have to report your income.
You can read this post for more information on how taxes work for these bonuses.
HT: DoC
