1099 INT Form Required?

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Question:

Marketing would like to run a special where a small business customer will receive a $100 credit for opening a new checking account if they also get a debit card. Would this $100 credit be considered interest and would a 1099 INT form be needed?

Answer:

If the $100 is related to the acquisition of a debit card, this would be considered miscellaneous income and reportable on a 1099MISC if total payments to the recipient is $600 or more in a year. Certain businesses and types of payments may be exempt from 1099MISC reporting and you should refer to the instructions found here.

First published on BankersOnline.com 2/05/07