Do Bank Bonuses Show Up on a 1099-INT?

Yes, bank bonuses are taxable income. The IRS treats checking bonuses, savings bonuses, and any interest earned on your account the same way. Once you earn $10 or more in bonuses or interest from a bank in a calendar year, the bank is required to report it on Form 1099-INT. You'll receive this form in your mailbox or online account sometime in January or February of the following year.

You're supposed to report this income even if you don't receive a 1099-INT. Banks don't always send them for small amounts, but the income is still taxable either way. This applies to every bank bonus you earn, whether it's a checking, savings, or fintech account.

The practical impact depends on your tax bracket, but a rough rule of thumb is to expect to keep about 70 to 80 cents of every dollar you earn in bonuses after federal taxes. State income taxes vary. For example, if you earn the Chase Total Checking $400 bonus, you'd keep roughly $300 to $320 after taxes depending on your bracket. It doesn't make bonuses not worth doing. It's good to go in with realistic expectations rather than being surprised later.

If you're earning several bonuses a year, a simple spreadsheet tracking what you earned and from which bank makes tax filing a lot less painful. Some people also set aside a portion of each bonus as it comes in so there's no scramble come April. If you also earned interest from a HYSA during the year, that gets reported the same way on your 1099-INT. You can browse current bonuses to see which ones are available now.