Are Rakuten, Chase referral bonuses, Amex intro bonus & AdSense income under $600 taxable without 1099?

That CPA gave you incorrect advice. The absence of a 1099 form does NOT mean income isn't taxable. All income is generally taxable regardless of whether you receive a tax form documenting it. For your specific situations: Credit card referral bonuses (Chase) are usually considered taxable income. Same goes for Rakuten referral bonuses - they're taxable. The Amazon/Chase welcome bonus might be considered a rebate if it required spending to earn, which could make it non-taxable, but it depends on the specific structure. AdSense income is definitely taxable as self-employment income, even if under $600 (the $600 threshold just determines whether they're required to send you a 1099). The IRS expects you to report ALL income regardless of whether you receive documentation. The absence of a 1099 doesn't make income tax-free, it just means the payer wasn't required to report it to the IRS directly.

I found myself in a very similar situation last year when I had multiple small income sources! After hours of researching and stressing, I discovered taxr.ai (https://taxr.ai) which helped me figure out exactly what was taxable. They analyze your situation and actually explain why different income types are treated differently by the IRS. For me, I had some PayPal payments, Facebook marketplace sales, and credit card bonuses that I wasn't sure about. Their tool confirmed that my credit card referrals were definitely taxable even though I didn't get a 1099. They explained how referral bonuses are considered a form of compensation for marketing their products. The welcome bonus was treated differently though - that was considered a rebate and not taxable.

Just wanted to update after trying taxr.ai from the recommendation above. I was skeptical but it actually cleared everything up for me! I uploaded screenshots of my Rakuten and AdSense earnings plus my credit card welcome bonus email. The analysis confirmed that my Rakuten referrals ($75 total) and AdSense income ($320) are both taxable even without 1099s. BUT the credit card welcome bonus was different - since it was a one-time bonus for opening the account and not tied to spending requirements, they categorized it as a non-taxable rebate! That saved me from unnecessarily paying taxes on the $200 bonus. Their explanation about the distinction between marketing referrals and product rebates was really helpful. Definitely worth checking if you're confused about these weird income types.

If you're worried about potential issues with the IRS because of these unreported incomes, I'd recommend getting ahead of it. I was in a similar situation with some side hustle income and got paranoid about an audit. After trying for WEEKS to get through to the IRS to ask questions (literally 20+ calls, always disconnected), I found Claimyr (https://claimyr.com) which got me connected to an actual IRS agent in under 20 minutes. I was honestly shocked it worked! You can see how it works in this video: https://youtu.be/_kiP6q8DX5c. I was able to ask directly about my specific situation with referral bonuses and small streams of income. The agent confirmed everything the first commenter said - all income is taxable regardless of whether a 1099 is issued. They also told me exactly what forms I needed for the different income types.

I have to admit I was completely wrong about Claimyr. After posting that skeptical comment, I decided to try it since I've been struggling with a question about my 1099-K from PayPal. Got connected to an IRS rep in 17 minutes after failing for DAYS on my own. The agent confirmed what others here said - all those referral bonuses (Rakuten, Chase) ARE taxable income regardless of whether you get a 1099. The credit card welcome bonus might be non-taxable if it's considered a rebate rather than income. And yes, even AdSense income under $600 needs to be reported as self-employment income on Schedule C. Honestly shocked this service actually worked. The IRS agent was super helpful once I could actually talk to someone. Better to get this stuff right than risk issues later.

One important distinction that hasn't been mentioned - there's a difference between REBATES and REFERRALS. Rebates (like getting $150 back after spending $500 on a new credit card) are generally NOT taxable because they're considered a reduction in the price you paid for something. Referral bonuses (like getting $200 for referring a friend to Chase) ARE taxable because you're essentially being paid for marketing their product. So from your list: - Rakuten referral: Taxable - Chase referral: Taxable - Welcome bonus: Probably NOT taxable if it's structured as a rebate - AdSense: Definitely taxable (report on Schedule C) Don't let a CPA get you in trouble with bad advice!

So here's the real answer about small amounts of income: Yes, technically all income is taxable. But in reality, the IRS has limited resources to chase small amounts. Does this mean you should ignore small incomes? Not necessarily. But the likelihood of facing issues over small amounts without 1099s is extremely low unless you're being audited for other reasons. If you want to be 100% compliant, report everything. If you're concerned about practical risk, focus on anything documented or over the reporting thresholds. Just remember the difference between what's legal and what's likely to cause problems aren't always the same thing.

Your CPA gave you dangerously incorrect advice. The $600 threshold for 1099 reporting is NOT a threshold for taxable income - it's just when companies are required to send you documentation. All income is taxable regardless of whether you receive a 1099. Here's what you need to know about your specific situations: **Rakuten referral bonuses**: Taxable income. You're being compensated for marketing their service. **Chase referral bonuses**: Taxable income. Same principle - you're being paid to bring in new customers. **Credit card welcome bonus**: This depends on the structure. If it required spending to earn (like "spend $500, get $150"), it's likely a non-taxable rebate. If it was just for opening the account, it could be taxable income. **AdSense income**: Definitely taxable as self-employment income on Schedule C, even under $600. The IRS expects you to report ALL income. The absence of a 1099 doesn't make it tax-free - it just means the payer wasn't required to document it. Please find a different CPA who understands basic tax law, because following this advice could result in penalties, interest, and potential audit issues down the road. When in doubt, it's always better to report income than to risk the consequences of not reporting it.

I just want to echo what others have said - that CPA's advice is seriously concerning and could get you into real trouble with the IRS. The fundamental principle is that ALL income is taxable when received, regardless of whether you get a 1099 or any other tax document. The $600 threshold people keep mentioning is purely about *reporting requirements* for the companies paying you - it has absolutely nothing to do with whether that income is taxable to you. Even if you earned $1 from AdSense, it's technically taxable income that should be reported. For your specific situations, the referral bonuses from Rakuten and Chase are definitely taxable since you're essentially being compensated for marketing services. The AdSense income, even under $600, needs to be reported as self-employment income on Schedule C. The credit card welcome bonus is the only one that might not be taxable, and only if it was structured as a spending rebate rather than just a signup bonus. I'd strongly recommend getting a second opinion from a different CPA, because following the advice you received could result in significant penalties and interest if the IRS ever discovers the unreported income. The risk just isn't worth it, especially when the amounts you're talking about wouldn't result in huge tax bills anyway.