Does the Chime sign-on bonus need to be reported on tax filing?

Wait but what if I never got any 1099 form from them? I got a $75 bonus from Chime last year but never saw any tax form. Does that mean I dont need to report it?

You're still required to report all income regardless of whether you receive a form. Financial institutions only send 1099-INT forms when interest exceeds $10, but they still report all payments to the IRS. For your $75 bonus, you should include it as "Other Income" on your tax return. The IRS can match what Chime reports against your return, so it's best to include everything even without receiving a physical form.

How exactly does that work? Does it just read bank statements for you or something? I have bonuses from like 3 different banks this year and trying to sort it all out.

Is it really worth paying for a service just to report a small bonus like that? Seems like overkill for a $125 payment. Couldn't you just add it as "other income" and be done with it?

It actually analyzes all your financial documents - bank statements, 1099s you did receive, and even emails confirming bonuses. It identified places where I was missing documentation for income I'd received. For multiple bank bonuses, it's definitely helpful because it organizes everything in one place and tells you exactly where each type of income needs to be reported. Some bonuses are reported as interest while others are considered miscellaneous income, which get reported differently on your return.

How does that even work? The IRS just magically calls you back when other people have been waiting for hours? Sounds sketchy tbh.

Yeah right. Nothing can get through to the IRS these days. I'll believe it when I see it. Been trying to get through about my missing refund for weeks with no luck.

It's actually pretty simple - they use an automated system that waits on hold for you and then calls you once an IRS agent picks up. You don't lose your place in line, you just don't have to be the one sitting there listening to the hold music. As for it working, I was skeptical too until I tried it. I had been on hold for over an hour before giving up. With Claimyr, I got a call back in about 15 minutes, and the IRS agent was already on the line when my phone rang.

Thanks for this info. So even if I don't get a physical 1099 form, I should still enter the bonus somewhere in my tax software? Will the IRS know if I don't report such a small amount?

Yes, you should still enter the bonus in your tax software even without receiving a physical form. Most tax programs have a section for "Income without a form" or "Other Income" where you can report these small amounts. The IRS does have the ability to know about these payments because financial institutions report them. While they might not flag a small discrepancy immediately, they can match reported payments against your tax return for up to several years. It's generally not worth the risk of an amendment or potential penalties over a small amount of income.

They all report it to the IRS whether they send you a form or not. I used to work at a bank. The threshold for sending you a 1099-INT is $10 in interest, but ALL payments are reported to the IRS electronically. You should report everything even without the forms.