Chase Giving Away Free Money

[Uborrow-Upay]

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@missypants wrote:

I received a mailer from Chase: If I opened a checking account they'd deposit $125. I did and they did, so I just used that money along with my own funds to oepn a new secured credit card with another bank.

In six months, I'm going to close the account. Just wanted the free moolah.

Ha Ha Ha 

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You crack me up!

[bakalao2k]

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@MarineVietVet wrote:

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@Anonymous wrote:

Yes, you have to keep the account open at least 6 months or they charge the money back to you....maybe it's prorated, I'm not sure.

Also, they will send you a 1099 for the money as "interest" end of year that you will need to declare on your taxes.

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And do you know that from personal experience????

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i received a 1099 form from chase last week.  i received two bonuses from them last year by opening wamu and chase checking accounts.

[haulingthescoreup]

Perhaps this is only on banking accounts, as opposed to cash rewards on CC's. We had a thread here recently with a link about this, which I wish I could find.

I made way over $25 on PenFed rewards last year, but they didn't send a 1099. Thus my guess about bank accounts vs credit accounts.

[Anonymous]

For tax purposes, cash rewards are considered rebates on money spent. "Free" gifts from banks for opening accounts are apparently allowed to be written off as interest payments, for some reason.

[Uborrow-Upay]

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@Anonymous wrote:
For tax purposes, cash rewards are considered rebates on money spent. "Free" gifts from banks for opening accounts are apparently allowed to be written off as interest payments, for some reason.

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+1

The credit card rewards are not taxed; bonuses from opening bank accounts (and those referral bonuses earned when friends open bank accounts) are treated as interest income.

An online bank had a promo a few years back which paid $25 for every referral opening an account. The money I earned was reported as interest and was taxable.

[haulingthescoreup]

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Uborrow-Upay wrote:

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@Anonymous wrote:
For tax purposes, cash rewards are considered rebates on money spent. "Free" gifts from banks for opening accounts are apparently allowed to be written off as interest payments, for some reason.

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+1

The credit card rewards are not taxed; bonuses from opening bank accounts (and those referral bonuses earned when friends open bank accounts) are treated as interest income.

An online bank had a promo a few years back which paid $25 for every referral opening an account. The money I earned was reported as interest and was taxable.

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Thanks for the clarification, gentlemen!

This question always seems to pop up this time of year, lol.