1099 Reporting on Savings Account Giveaway

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Question:

We are giving away three one hundred dollar savings accounts as a marketing promo. We want to know if they are reported on the customer 1099-INT, added to any interest that the account may earn in the same calendar year.

Answer:

The $100 saving account given away would not be interest and wouldn't be reported on a 1099-INT. It would be considered miscellaneous income and should be aggregated with any other miscellaneous income, and if applicable, reported on a 1099-MISC. I believe the threshold for 1099-MISC reporting is $600.

First published on BankersOnline.com 4/19/10