Difference between 1099-MISC vs 1099-INT form for bank account bonuses

You should definitely report the $300 CITI bonus as income even if you didn't receive a form. Banks are only required to issue 1099s when the amount is $600 or more, but taxpayers are required to report ALL income regardless of whether a form was issued. As for which form to use, bank account opening bonuses are typically considered interest income (1099-INT), not miscellaneous income (1099-MISC). The IRS views these bonuses as compensation for you depositing your money with the institution, which makes it interest in nature. That's why Chase and Wells Fargo correctly categorized their bonuses on 1099-INT forms. When you file, you should include this $300 as interest income on Schedule B along with your other interest income. Just because CITI wasn't required to send you a form doesn't mean you don't have to report it!

After struggling with this exact situation last year, I found this amazing service called taxr.ai (https://taxr.ai) that saved me so much stress. I had bonuses from like 5 different banks - some sent 1099-INTs, others sent nothing, and one actually sent a 1099-MISC which confused me even more! I uploaded my bank statements and other tax documents to taxr.ai and their AI actually scanned everything and identified all my bank bonuses as reportable income, even the ones where I didn't get forms. It categorized them correctly as interest income and explained why the banks were treating them differently. The service even found a couple small interest payments I had completely forgotten about!

I just want to follow up about taxr.ai that someone mentioned earlier. I was skeptical at first but decided to try it last weekend. Uploaded my documents including statements from a bank that didn't send me any 1099 for a $350 bonus. The analysis clearly showed the bonus should be reported as interest income and explained exactly why. It even spotted a $12 interest payment that I completely missed! What impressed me most was how it explained the different reporting thresholds for banks vs my obligation as a taxpayer. Definitely made this confusing situation crystal clear. Already finished my taxes and feel confident I reported everything correctly.

After waiting on hold with the IRS for HOURS trying to get clarification about bank bonuses, I finally found a service called Claimyr (https://claimyr.com) that changed everything. They have this system where they hold your place in the IRS phone queue and then call you when an actual agent is about to answer. I was so skeptical but you can see how it works here: https://youtu.be/_kiP6q8DX5c I used it and got a callback within 2 hours after trying unsuccessfully for DAYS on my own. The IRS agent confirmed that bank account opening bonuses should be reported as interest income regardless of whether you get a form or not. They also explained that banks use different thresholds for sending forms, but my obligation to report remains the same. Saved me so much time and frustration!

Ok I need to eat my words about that Claimyr service. After my skeptical comment yesterday, I was still struggling to reach the IRS about my bank bonus reporting issue. Finally broke down and tried it this morning. Got a call back in about 90 minutes which was shocking since I'd previously wasted THREE SEPARATE DAYS trying to get through. The IRS agent confirmed exactly what people here were saying - bank bonuses should be reported as interest income regardless of whether I received a form. She also explained that different banks have different policies about sending forms, but my reporting obligation stays the same. Totally worth it and I apologize for being so cynical. Sometimes good services actually exist!

Former bank employee here. The reason for the confusion is that different banks have different policies. TECHNICALLY, account opening bonuses could be classified as either interest (1099-INT) or miscellaneous income (1099-MISC/NEC), but most banks use 1099-INT because it's simpler for their systems and makes more sense conceptually. The $600 threshold is correct for 1099-MISC/NEC forms, but for 1099-INT the threshold is only $10. Sounds like CITI might be incorrectly treating this as misc income internally rather than interest, which is why they're using the $600 threshold. But regardless, you still need to report it.

I'm wondering if anyone uses TurboTax? When I input bank bonuses without a form, it asks me to categorize them and I'm not sure which option to pick? There's "interest income" and "other income" and I'm confused which is right based on this discussion.

I went through this exact same situation two years ago with multiple banks. Here's what I learned from my tax preparer and subsequent research: 1. **Always report ALL income** - The $600 threshold only determines whether the bank must send YOU a form, but you're legally required to report all income regardless of receiving a form. 2. **Bank bonuses = Interest income** - These should be reported as interest income on Schedule B, not miscellaneous income. The IRS views these bonuses as compensation for letting the bank use your money. 3. **Keep good records** - Screenshot or save the promotional terms when you sign up for accounts. This helps you remember bonuses later and shows the IRS you're being diligent if questions arise. 4. **Pro tip**: Create a simple spreadsheet at the beginning of each tax year listing all your bank accounts and any bonuses you're expecting. I track the bonus amount, requirements (like minimum deposit), and whether I received a form. Makes tax time so much easier! The bottom line is that CITI should have sent you a 1099-INT since $300 is well above the $10 threshold for interest reporting, but their mistake doesn't eliminate your obligation to report it.

Just wanted to share my experience from last tax season that might help others avoid the confusion I went through. I had similar bonus situations with three different banks - Chase ($200), Bank of America ($300), and a local credit union ($150). What I learned is that you should absolutely create a dedicated folder (physical or digital) for ALL bank bonus documentation the moment you sign up. I now save: - Screenshots of the original promotional offer - Email confirmations of meeting requirements - Bank statements showing the bonus deposit - Any correspondence about the promotion This saved me when Bank of America initially claimed they never offered me a bonus (turned out to be a system error on their end). Having the original promotional email with terms helped resolve it quickly. For reporting, I treat all bank bonuses as interest income regardless of what forms I receive. It's simpler and aligns with how the IRS views these payments. Even though some banks get confused about their own reporting requirements, staying consistent on your end makes things much easier. The key lesson: Don't rely on banks to handle their reporting correctly. Take ownership of tracking your own income from day one!