Banks often provide awards to lure new customers or to strengthen customer loyalty. Awards can take the form of a simple gift (cash or non-cash) or can be more complex, such as a sweepstakes involving some element of chance, or a reward points program.
If you have received an award from a bank, the IRS, always ready to claim the government’s share, may come knocking on your door. Taxation is dependent on how you receive the awards, what the award is, and its value. In certain situations, banks are required to, and may send a Form 1099, which reports the award value to the IRS and the award recipient. Here are some different award scenarios and corresponding actions to take… Read The Rest at Berry Dunn
