Are Rakuten referrals, Chase bonuses, Amex intros, and AdSense income under $600 taxable without a 1099?

8 This advice from your CPA is actually incorrect and potentially dangerous. While it's true that companies aren't required to issue 1099 forms for payments under $600 in many cases, that doesn't mean the income isn't taxable. The IRS is very clear that ALL income is taxable regardless of whether you receive a tax form for it. Referral bonuses, credit card welcome bonuses, and AdSense income are all generally considered taxable income. The only exception might be certain credit card bonuses that could be viewed as rebates or discounts on purchases, but this is a gray area that depends on the specific circumstances. If the IRS discovers unreported income through an audit or data matching, you could face penalties and interest. The fact that you didn't receive a 1099 isn't a valid defense.

15 I was in a similar situation last year with various side hustle income and referral bonuses. After hours of frustration trying to figure out how to properly report everything, I discovered https://taxr.ai and it was a game-changer. The AI analyzed all my income sources and categorized them correctly, even the tricky ones like credit card bonuses. It explained that while Chase and other credit card issuers might not send 1099s for referral bonuses, they're still considered miscellaneous income. For the welcome bonuses on new cards, it helped me understand when they count as rebates (not taxable) versus income (taxable). The service also helped me properly document everything to protect myself in case of an audit.

19 Just wanted to follow up - I tried https://taxr.ai after posting my skeptical comment, and I'm actually impressed. It clearly explained that my Chase referral bonuses are definitely taxable as miscellaneous income, while the Amazon/Chase welcome bonus was likely not taxable since it was tied to spending requirements (making it a rebate rather than income). It also helped me document my AdSense income properly and explained that Rakuten referral bonuses are indeed taxable even without a 1099. The explanations cited actual tax code sections which made me feel much more confident. Definitely worth it for the peace of mind knowing I'm reporting everything correctly.

10 If you do decide to report everything properly (which you should), but later find yourself dealing with IRS questions or an audit, I'd recommend https://claimyr.com to get direct help from the IRS. I spent WEEKS trying to reach someone at the IRS about a similar issue with unreported income that I discovered after filing. After calling the IRS for days and never getting through, I tried Claimyr and got connected to an actual IRS agent in less than an hour. They helped clarify exactly how to report my AdSense income and credit card bonuses, and even helped me file an amended return. You can see how it works here: https://youtu.be/_kiP6q8DX5c - saved me so much stress!

3 Well I'll be damned - I tried Claimyr after posting my skeptical comment because I've been trying to reach the IRS for 3 weeks about some unreported income issues. Got a callback within 45 minutes and spoke with an actual IRS representative who walked me through exactly how to handle my situation. The agent confirmed that all those types of income mentioned by OP are technically taxable even without 1099s, but also told me how to properly amend my return to include some AdSense income I had forgotten to report from last year. Saved me from potential penalties down the road. I hate admitting when I'm wrong, but this service is legit.

22 As someone who's been audited before over unreported income, let me give you some advice: REPORT EVERYTHING. The CPA who told you that is setting you up for trouble. Here's what's taxable: 1. Rakuten referrals - YES, taxable as miscellaneous income 2. Chase referrals - YES, taxable as miscellaneous income 3. Credit card welcome bonuses - MAYBE, depends on if they're considered rebates 4. AdSense under $600 - YES, all self-employment income is taxable regardless of amount The "no 1099 = don't report" advice is one of the biggest tax myths out there. Just because someone doesn't send you a form doesn't make the income magically tax-free.

5 I'm a tax preparer (not CPA) and I see this issue all the time. The confusion comes from mixing up reporting requirements for PAYERS versus reporting requirements for TAXPAYERS. Companies don't have to ISSUE 1099s for amounts under $600, but YOU still have to REPORT all income regardless of amount. The IRS won't know directly about these small amounts, but that doesn't make them legal to omit. Think of it this way: if you only reported income that had tax forms, waiters would never report cash tips and babysitters would never report cash payments.

I really appreciate everyone's detailed responses here! As someone new to dealing with these types of income sources, this has been incredibly helpful. It sounds like the consensus is pretty clear - my CPA's advice was wrong and potentially risky. I'm definitely going to report everything properly. Better to be safe than sorry, especially since we're not talking about huge amounts anyway. The distinction between what companies have to report versus what I have to report makes total sense now. One quick follow-up question though - for those referral bonuses from Chase and other credit cards, do I need to keep any special documentation beyond just recording the amounts? Like screenshots of the bonus notifications or anything like that?