1099 Form - Maximum Dollar Giveaway?

Answered by:

Question:

We are a new bank in formation in Oregon. Is there a maximum dollar amount that can used as a giveaway before a 1099 is necessary to be mailed to the customer?

Answer:

You have two 1099s to be concerned with. A 1099-MISC is started at $600 and a 1099-INT kicks in at $10. The instructions are linked so you'll know better when each is used. The MISC is for miscellaneous income such as a "reward" for starting direct deposit or referring an account. The INT is used to report interest income. Paying a $10 bonus on a savings account would trigger this and be added to the reportable interest you pay.

First published on BankersOnline.com 10/22/07