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rfan2013

Switching Bank accounts, promotion

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Under my Bank of America card I see they have a deal where I can get $300 if I switch to open a checking and savings account. I am currently with PNC. However $300 would be a nice bonus as im not exactly rich. I have heard though that this can be taxable, does anyone think this would cause me problems at tax time? Will I get a 1099? Any reasons to, or not do, this promotion?

 

I have in the past switched from PNC, to suntrust, and then back to PNC and got promotions like this, and didn't suffer any negative consequences. But I like to hear others opinions. I realize it may sound petty to switch for $300, but $300 is a nice little chunk of spending change and I may like BOA better than PNC.

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Under my Bank of America card I see they have a deal where I can get $300 if I switch to open a checking and savings account. I am currently with PNC. However $300 would be a nice bonus as im not exactly rich. I have heard though that this can be taxable, does anyone think this would cause me problems at tax time? Will I get a 1099? Any reasons to, or not do, this promotion?

 

I have in the past switched from PNC, to suntrust, and then back to PNC and got promotions like this, and didn't suffer any negative consequences. But I like to hear others opinions. I realize it may sound petty to switch for $300, but $300 is a nice little chunk of spending change and I may like BOA better than PNC.

When I opened a Citizen's checking account a few years ago and netted a $300 bonus, they sent me a 1099 for the bonus.

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I have opened/closed chase accounts (both checking and savings) for the past 3 yrs for the $500 bonus, while I had to park 20K in savings for 90 days and 5k overall after 90 until I reached 6 months. No issue from chase.

Each time you get money like this, they will send 1099 for sure.

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Any idea how much will be taxed on the 1099? Will it still end up being worth my time, or will it actually make me pay more so it's pointless? Forgive me, I know very little about how taxes work, as a single, male, not in college, non-home owner, no kids, I usually pay $400-$500 each year.

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Add the 300 to your current income and see if your tax rate will go up.

 

is it that simple? I haven't submitted my turbo tax so I guess I can log in and add 300 to a few boxes, and then drop it back so they are correct when I submit it. Was just looking for a general answer. One time I took money from my retirement account and they supposedly took taxes out when I took it out, then when tax time came and I entered it, they hit me again, hard.

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Under my Bank of America card I see they have a deal where I can get $300 if I switch to open a checking and savings account. I am currently with PNC. However $300 would be a nice bonus as im not exactly rich. I have heard though that this can be taxable, does anyone think this would cause me problems at tax time? Will I get a 1099? Any reasons to, or not do, this promotion?

 

I have in the past switched from PNC, to suntrust, and then back to PNC and got promotions like this, and didn't suffer any negative consequences. But I like to hear others opinions. I realize it may sound petty to switch for $300, but $300 is a nice little chunk of spending change and I may like BOA better than PNC.

Even if you were in a 30% tax bracket and had to pay $90 in taxes for this $300, you still got $210 in free money. You WIN! Take the $$$!

 

 

Sent from my iPad using Tapatalk

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Be sure to read the fine print before signing up. Most of these promotions have conditions like minimum balances and/or minimum direct deposit to avoid monthly fees to qualify for the payout, and minimum time to keep the account(s) open to avoid attempts at clawbacks.

 

I've done this several times with different banks as it's an easy churn and have always been sent a 1099.

 

In general it's really easy to get these types of bonuses, you just need to be fully aware of and be able to adhere to the requirements.

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