I have a tax reporting question. I have a simple checking account, no minimum balances, no required balances. The account is about 2 years old. Recently, I was upgraded to as a VIP customers based on the high volume ATM Transactions I have . The bank has been giving me $3 cash award each month as result of my status as a VIP customer. Should I be issued a informational tax form (i.e. 1099-misc or 1099-int)? If so, which one?
The $36 per year you are picking up as a result of your bank's generosity is most definitely taxable income. It's possible, however, that your bank will treat this income as "non-employee compensation" that would be subject to reporting on a 1099-MISC. If that is the case, the bank would not be required to complete a report unless you had other similar income from the bank, since the trigger amount for reporting is $600.
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The $36 per year you are picking up as a result of your bank's generosity is most definitely taxable income. It's possible, however, that your bank will treat this income as "non-employee compensation" that would be subject to reporting on a 1099-MISC. If that is the case, the bank would not be required to complete a report unless you had other similar income from the bank, since the trigger amount for reporting is $600.
