Guide

Are bank bonuses taxable?

Yes. A bank account bonus is taxable income, the same as interest.

How it's reported

Banks usually report bonuses as interest on Form 1099-INT, which they must send when they pay you $10 or more in a year. Some report them on Form 1099-MISC instead. You'll get the form early in the following year.

What you'll actually owe

The bonus is taxed at your regular income tax rate. If you're in the 22% federal bracket, a $400 bonus means about $88 in federal tax, plus state tax where it applies. You still keep most of it.

Keep it simple

Enter each 1099 when you file, the same way you'd enter interest from a savings account. Tax software and preparers handle these every year.

This is general information, not tax advice. See the IRS's page on Form 1099-INT for the official rules.