Maximum Non-Taxable Amount for New Mortgage Bonus
by John Burnett, BOL Guru Guru BIOS
Question: We are looking at giving a bonus for opening a new mortgage. Can you tell me what the maximum dollar amount is before the customer has to pay taxes?
Answer: The customer is obliged to report as income any payment the customer receives as a "bonus" payment, regardless of amount. It's "other income" on the Form 1040.
The bank will be obliged to report on Form 1099-MISC aggregate amounts of $600 or more paid to the same person.
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