Taxes
How bank bonuses are usually taxed.
Bank account bonuses are often reported like interest, which means the after-tax value can be lower than the headline bonus. This page is general education, not tax advice.
1. Expect many bank bonuses to show up on Form 1099-INT
Banks commonly report deposit-account rewards and interest on Form 1099-INT or a similar year-end statement. If a bonus is paid late in the year, check whether it was credited before year-end or in the following tax year.
2. A missing form does not automatically make the bonus tax-free
The IRS says taxable interest generally must be reported even if no Form 1099-INT arrives. Keep your own record of bonus payments, interest, account statements, and the year the money became available.
3. Compare offers after fees and estimated tax
A $500 bonus with a monthly fee, a large balance requirement, and ordinary income tax can be less attractive than a smaller bonus with fewer moving parts. Use the calculator to compare gross bonus, fees, expected tax rate, and capital lockup.
4. Save the records that make tax season easier
Save the offer page, promo code, application date, account-opening date, qualifying deposit dates, bonus payout date, account statements, and any tax form. If the provider reports a different amount than expected, those records help you reconcile the issue.
5. Brokerage bonuses may be reported differently
Brokerage transfer bonuses, stock rewards, interest, dividends, and realized gains can have different reporting paths. Review the brokerage tax documents and talk with a qualified tax professional if the amount is material or the treatment is unclear.
References
Last checked: May 28, 2026.
Related next steps
Estimate after-tax value before choosing between offers with different fees, payout windows, and cash requirements.