Bank didn't send 1099-INT, Tax Time

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retireIn2020
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Bank didn't send 1099-INT, Tax Time

Post by retireIn2020 »

So, I received $700.00 in interest income from a local bank very early in 2022 and closed the account shortly after in Feb 2022.
When the account was opened, I was told I would receive 1099-INT for interest earned on the account which I never received so far in 2023.
I subsequently called the bank and asked for the 1099-INT. They started by saying there wasn't one and not to worry about it. After my persistence, the associate put me on hold to check. He came back stating that he would put in a request to issue the 1099-INT.

I guess my question is, does the Bank have an obligation to issue the 1099 by a certain date? or should I just make up a 1099 in Turbotax to report the interest?
Last edited by retireIn2020 on Tue Jan 24, 2023 2:15 am, edited 1 time in total.
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Katietsu
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Re: Bank didn't send 1099-INT

Post by Katietsu »

The bank does not need to even put it in the mail until January 31. I have only received one so far. So I am not sure if I understand what you mean when you say you never received the 1099. If this is for interest in 2022, you would typically only be receiving the form sometime in the next couple of weeks.
nalor511
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Re: Bank didn't send 1099-INT, Tax Time

Post by nalor511 »

You don't actually need the 1099 to report this on your taxes, not worth wasting time over, you know the amount ($700)
Gryphon
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Re: Bank didn't send 1099-INT, Tax Time

Post by Gryphon »

In previous years I sometimes wouldn't get all my 1099's until early February. This year's been better than usual, I got the last one today. So I wouldn't count out getting one just yet.

If you don't get one in the next couple weeks, I'd file without it. As long as you have your bank statements for the account you have documentation of the interest earned.
jebmke
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Re: Bank didn't send 1099-INT, Tax Time

Post by jebmke »

nalor511 wrote: Tue Jan 24, 2023 2:19 am You don't actually need the 1099 to report this on your taxes, not worth wasting time over, you know the amount ($700)
Plus, e-filing just opened and softwares are still very glitchy.
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invest4
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Re: Bank didn't send 1099-INT

Post by invest4 »

Katietsu wrote: Tue Jan 24, 2023 2:15 am The bank does not need to even put it in the mail until January 31. I have only received one so far. So I am not sure if I understand what you mean when you say you never received the 1099. If this is for interest in 2022, you would typically only be receiving the form sometime in the next couple of weeks.
nalor511 wrote: Tue Jan 24, 2023 2:19 am You don't actually need the 1099 to report this on your taxes, not worth wasting time over, you know the amount ($700)
jebmke wrote: Tue Jan 24, 2023 6:55 am Plus, e-filing just opened and softwares are still very glitchy.

All of these.

In particular, those who file early on while the providers are still finding / fixing software bugs do so at the risk of significant annoyance.
jebmke
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Re: Bank didn't send 1099-INT, Tax Time

Post by jebmke »

invest4 wrote: Tue Jan 24, 2023 7:43 am In particular, those who file early on while the providers are still finding / fixing software bugs do so at the risk of significant annoyance.
Those of us who file later are grateful for the early filers who agreed to pay the software companies money to become part of their quality assurance teams.
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Quirkz
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Re: Bank didn't send 1099-INT, Tax Time

Post by Quirkz »

Agree with others you're at least a week too early on this. Though if you have an online login for the bank you might be able to go and get it yourself.

But it's also true you don't need the 1099 to report the interest. If you know the amount, just add that to the interest field in the tax form.
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retireIn2020
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Re: Bank didn't send 1099-INT, Tax Time

Post by retireIn2020 »

Since I closed the account early in year 2022, I no longer have online access and all statements were online. I do know the amount was $700 so I'll just create a 1099 INT in turbo tax and wait until March to file.

The Bank confused me when I contacted them and told me there was no 1099 to report for the bonus and said not to worry about it.
On one hand I hate paying tax for something that is not required, on the other I don't want to find out later in the year that the bank sent in a 1099-INT to the IRS.

I thought institutions had an obligation to report 1099s buy a certain date?
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TropikThunder
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Re: Bank didn't send 1099-INT, Tax Time

Post by TropikThunder »

retireIn2020 wrote: Tue Jan 24, 2023 12:01 pm Since I closed the account early in year 2022, I no longer have online access and all statements were online. I do know the amount was $700 so I'll just create a 1099 INT in turbo tax and wait until March to file.

The Bank confused me when I contacted them and told me there was no 1099 to report for the bonus and said not to worry about it.
On one hand I hate paying tax for something that is not required, on the other I don't want to find out later in the year that the bank sent in a 1099-INT to the IRS.

I thought institutions had an obligation to report 1099s buy a certain date?
As a previous commenter said, they have to send you one by Jan 31. It’s not Jan 31 yet so they probably haven’t even generated them yet, which is probably why the CS rep said you didn’t have one.
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retireIn2020
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Re: Bank didn't send 1099-INT, Tax Time

Post by retireIn2020 »

TropikThunder wrote: Tue Jan 24, 2023 12:04 pm
retireIn2020 wrote: Tue Jan 24, 2023 12:01 pm Since I closed the account early in year 2022, I no longer have online access and all statements were online. I do know the amount was $700 so I'll just create a 1099 INT in turbo tax and wait until March to file.

The Bank confused me when I contacted them and told me there was no 1099 to report for the bonus and said not to worry about it.
On one hand I hate paying tax for something that is not required, on the other I don't want to find out later in the year that the bank sent in a 1099-INT to the IRS.

I thought institutions had an obligation to report 1099s buy a certain date?
As a previous commenter said, they have to send you one by Jan 31. It’s not Jan 31 yet so they probably haven’t even generated them yet, which is probably why the CS rep said you didn’t have one.
Ah, thanks I missed that. So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
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UpperNwGuy
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Re: Bank didn't send 1099-INT, Tax Time

Post by UpperNwGuy »

retireIn2020 wrote: Tue Jan 24, 2023 12:18 pm Ah, thanks I missed that. So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
No, that is not a safe assumption. Read the instructions for tax returns and follow the guidance contained therein. Don't depend on the bank to tell you what to do.

By the way, if the bank is Chase, they will undoubtedly report the bonus to the IRS. They consider it to be interest.
Last edited by UpperNwGuy on Tue Jan 24, 2023 12:29 pm, edited 1 time in total.
nalor511
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Re: Bank didn't send 1099-INT, Tax Time

Post by nalor511 »

retireIn2020 wrote: Tue Jan 24, 2023 12:18 pm
TropikThunder wrote: Tue Jan 24, 2023 12:04 pm
retireIn2020 wrote: Tue Jan 24, 2023 12:01 pm Since I closed the account early in year 2022, I no longer have online access and all statements were online. I do know the amount was $700 so I'll just create a 1099 INT in turbo tax and wait until March to file.

The Bank confused me when I contacted them and told me there was no 1099 to report for the bonus and said not to worry about it.
On one hand I hate paying tax for something that is not required, on the other I don't want to find out later in the year that the bank sent in a 1099-INT to the IRS.

I thought institutions had an obligation to report 1099s buy a certain date?
As a previous commenter said, they have to send you one by Jan 31. It’s not Jan 31 yet so they probably haven’t even generated them yet, which is probably why the CS rep said you didn’t have one.
Ah, thanks I missed that. So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
All income must be reported to the IRS, whether you get a 1099 or not.
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CAsage
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Re: Bank didn't send 1099-INT, Tax Time

Post by CAsage »

retireIn2020 wrote: Tue Jan 24, 2023 12:18 pm Ah, thanks I missed that. So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
Interest is one of those things that is super easy for the IRS to verify. Any amount over $10 is required to be reported by the institution to the IRS, and to issue you a 1099. I would not omit that on my tax return, I would fully expect the IRS to get back to you with penalties on that.
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Nate79
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Re: Bank didn't send 1099-INT, Tax Time

Post by Nate79 »

If a bonus was received as part of a credit card offer then it is not generally reportable. If it was part of a bank account opening bonus then it is reportable. Regardless what the credit union reports or says.
Swift
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Re: Bank didn't send 1099-INT, Tax Time

Post by Swift »

retireIn2020 wrote: Tue Jan 24, 2023 12:18 pm
TropikThunder wrote: Tue Jan 24, 2023 12:04 pm
retireIn2020 wrote: Tue Jan 24, 2023 12:01 pm Since I closed the account early in year 2022, I no longer have online access and all statements were online. I do know the amount was $700 so I'll just create a 1099 INT in turbo tax and wait until March to file.

The Bank confused me when I contacted them and told me there was no 1099 to report for the bonus and said not to worry about it.
On one hand I hate paying tax for something that is not required, on the other I don't want to find out later in the year that the bank sent in a 1099-INT to the IRS.

I thought institutions had an obligation to report 1099s buy a certain date?
As a previous commenter said, they have to send you one by Jan 31. It’s not Jan 31 yet so they probably haven’t even generated them yet, which is probably why the CS rep said you didn’t have one.
Ah, thanks I missed that. So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
No one has told you that it isn't reportable - you'd just enter the information anyway despite not getting a 1099. But give it time, it seems you're being rather anxious and 1099's haven't even arrived for most of us yet.
TravelGeek
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Re: Bank didn't send 1099-INT, Tax Time

Post by TravelGeek »

retireIn2020 wrote: Tue Jan 24, 2023 12:18 pm
Ah, thanks I missed that. So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
I don't think that's safe to assume. I don't usually chase bank account bonuses, but unlike credit card sign-up bonuses I have never seen/heard of a bank account (checking, savings) bonus that wasn't taxable and reported on a 1099-INT.

What bank and what offer are you referring to?
RetiredAL
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Re: Bank didn't send 1099-INT, Tax Time

Post by RetiredAL »

retireIn2020 wrote: Tue Jan 24, 2023 12:18 pm
.... So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
Carefull, it may get lost in the mail.

Today's task for me is to contact DFAS since no 1099R for my late Dad military retirement has be received. They are usually delivered before Xmas. The previous year's was also missing so had I to call.
Hyperchicken
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Re: Bank didn't send 1099-INT, Tax Time

Post by Hyperchicken »

If the bank does not send you a 1099 form, it's on them. It's against the law, but you can't control what others are doing.

If you don't declare taxable income on your tax return, it's on you. It is in your control to comply with the tax law and declare the income regardless of whether you received the 1099 form.
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Re: Bank didn't send 1099-INT, Tax Time

Post by talzara »

TravelGeek wrote: Tue Jan 24, 2023 12:26 pm I don't think that's safe to assume. I don't usually chase bank account bonuses, but unlike credit card sign-up bonuses I have never seen/heard of a bank account (checking, savings) bonus that wasn't taxable and reported on a 1099-INT.
The IRS considers credit card rewards to be a refund of credit card fees. Since the fees were after-tax, the refund is also after-tax.

There are some banks that tie bonuses to certain activities, including direct deposit and spending on a debit card. In those cases, it is unclear whether the bonus is taxable, non-taxable, or partially-taxable.
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retireIn2020
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Re: Bank didn't send 1099-INT, Tax Time

Post by retireIn2020 »

TravelGeek wrote: Tue Jan 24, 2023 12:26 pm
retireIn2020 wrote: Tue Jan 24, 2023 12:18 pm
Ah, thanks I missed that. So, if I file in March and the bank has not issued a 1099 by then, is it safe to assume the $700 bonus I received for opening the account is not reportable?
I don't think that's safe to assume. I don't usually chase bank account bonuses, but unlike credit card sign-up bonuses I have never seen/heard of a bank account (checking, savings) bonus that wasn't taxable and reported on a 1099-INT.

What bank and what offer are you referring to?
This was a local bank in my area, they offered the $700 bonus for opening a checking account (similar to the Chase bank checking/savings sign up bonus). I also opened a checking account with Chase bank and did get a 1099-INT from them. I also got multiple credit cards with bonuses.

I'm going to report it based on the responses in this thread, thanks everyone. From what I gather, I should report all bank checking/savings bonuses but not the credit card bonuses.
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Asyouwish
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Re: Bank didn't send 1099-INT, Tax Time

Post by Asyouwish »

Wait for the 1099. January 31 is the legal due date for them to mail it. My bank says the online version won’t be available until after February 1. To be safe, wait until February 15. Especially if there is other interest earned. The amount might not be an exact $700.
Swift
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Re: Bank didn't send 1099-INT, Tax Time

Post by Swift »

talzara wrote: Tue Jan 24, 2023 1:23 pm
TravelGeek wrote: Tue Jan 24, 2023 12:26 pm I don't think that's safe to assume. I don't usually chase bank account bonuses, but unlike credit card sign-up bonuses I have never seen/heard of a bank account (checking, savings) bonus that wasn't taxable and reported on a 1099-INT.
The IRS considers credit card rewards to be a refund of credit card fees. Since the fees were after-tax, the refund is also after-tax.

There are some banks that tie bonuses to certain activities, including direct deposit and spending on a debit card. In those cases, it is unclear whether the bonus is taxable, non-taxable, or partially-taxable.
Actually, I'm pretty sure the IRS considers credit card rewards to be a discount on purchases, not a refund of fees.
safari
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Re: Bank didn't send 1099-INT, Tax Time

Post by safari »

Swift wrote: Tue Jan 24, 2023 2:32 pm
talzara wrote: Tue Jan 24, 2023 1:23 pm
TravelGeek wrote: Tue Jan 24, 2023 12:26 pm I don't think that's safe to assume. I don't usually chase bank account bonuses, but unlike credit card sign-up bonuses I have never seen/heard of a bank account (checking, savings) bonus that wasn't taxable and reported on a 1099-INT.
The IRS considers credit card rewards to be a refund of credit card fees. Since the fees were after-tax, the refund is also after-tax.

There are some banks that tie bonuses to certain activities, including direct deposit and spending on a debit card. In those cases, it is unclear whether the bonus is taxable, non-taxable, or partially-taxable.
Actually, I'm pretty sure the IRS considers credit card rewards to be a discount on purchases, not a refund of fees.
Credit card sign-up bonuses are treated just like cashback. You always have to spend a certain amount to earn the bonus, which is always less than the amount you spent. Bank bonuses, on the other hand, are treated as interest, as they don't usually have any spending requirements, and you have to deposit money and keep it for a certain time to earn the bonus.
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SmileyFace
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Re: Bank didn't send 1099-INT, Tax Time

Post by SmileyFace »

I am surprised the bank didn't just say "Call us back mid-February if you don't have it - they don't need to go out until 1/31".
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asset_chaos
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Re: Bank didn't send 1099-INT, Tax Time

Post by asset_chaos »

You don't need a 1099-INT; just report the interest on your 1040. I live outside the US and have a non-US bank account, from which I, of course, never recieve a 1099. Every year for a couple of decades I've put the interest amount and name of bank in the 1040, and the IRS has never complained.

On the other hand, my US credit union had the 1099-INT available online 2nd week of January.
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gavinsiu
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Re: Bank didn't send 1099-INT, Tax Time

Post by gavinsiu »

You could save a copy of your dec statement showing what you earn for the year in case IRS comes knocking. If the amount is too small, they won’t sent one, but 700 is not too little.
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