Yes. A bank account bonus counts as taxable income in the year you receive it.
A bank account bonus is cash a bank pays you for opening or funding a new checking or savings account. That payment is usually treated as bank interest. It is taxed at ordinary-income rates, not at a special bonus rate.
Table of Contents
- How is a bank bonus taxed?
- Will you receive a tax form?
- Where do you report the bonus?
- What about gifts and bank fine print?
How is a bank bonus taxed?
A bonus for opening or funding an account is generally taxable income. The Internal Revenue Service says these cash bonuses are usually characterized as bank interest taxed at ordinary-income rates, according to Topic No.
403 guidance. This applies whether the bonus is $200 or $2,500. You owe tax for the calendar year the bank pays it, not the year you applied.
Will you receive a tax form?
Most deposit bonuses trigger a Form 1099-INT. The Internal Revenue Service notes banks generally must file and furnish that form once you receive $10 or more of interest in a year, according to its Guide to Information Returns. A missing form does not make the bonus tax-free.
You must report all taxable interest even when no 1099-INT arrives. Some bonuses are instead reported as miscellaneous income on Form 1099-MISC. The IRS reporting threshold was $600 for pre-2026 payments and rises to $2,000 for payments made in 2026, with later years inflation-adjusted.
Where do you report the bonus?
Interest-type bonuses go on your individual return as interest income. Filers with over $1,500 of taxable interest or ordinary dividends must list each payer on Schedule B of Form 1040, according to the Internal Revenue Service Instructions for Schedule B 2025. Use these steps at filing time: If you earned two bonuses from different banks, list each bank separately when Schedule B is required.
- Add the bonus amount to your total interest income.
- Enter the bank name and amount on Schedule B if you meet the $1,500 filing trigger.
- Keep the 1099 or bank statement with your tax records.
What about gifts and bank fine print?
Noncash gifts for opening an account or making deposits can also count as reportable interest. Publication 550 sets reporting thresholds of over $10 for deposits under $5,000 and over $20 for deposits of $5,000 or more. Banks disclose the same result in offer terms.
Bank of America warns an account bonus may constitute taxable income, may trigger a Form 1099, and may face withholding. Wells Fargo tells bonus recipients they are responsible for taxes due and that the bank will report the bonus as required by law. Set aside part of the bonus so the tax bill does not surprise you.
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