Chase Bonus - Interest Income on 1099

[JenB1104]

So I am considering taking advantage of an offer by Chase bank to open both checking and savings for a total of 500.00 credit. In the terms it says that it is reported on a 1099 form for taxes. So, I assume if I pay around 25% in taxes on income then I would still be ahead 375.00. Am I missing anything? I am good with the minimum deposit and balance terms.

 

[amcnj]

No, I believe you are correct. If it is on a 1099 you would have to claim it in your taxes, and you would thus end up owing additional taxes at your marginal tax rate. Don't know if you also have state or local taxes to consider too. But even so ,they are presumably below 100% in total, so you would still come out ahead.