Is my SOFI refinancing bonus taxable income?

[okayplayer]

Okay, to settle this once and for all (and since I am on vacation and not working today), I called Sofi. The gentleman I spoke to said once the amount reached $500 they consider it income and generate a 1099. Referral bonuses less than $500 do not generate a 1099 and are also not considered income per Sofi.

Doesn’t make any sense to me, but I ever get audited this is what I will tell them.

[okayplayer]

I’m sure you’re right, WCI. She had $600 of “income” from 2 referrals and was sent a 1099.

I’m guessing you also get one from them for $XX,000 per year, no?

[The White Coat Investor]

It's a $600 limit.

[okayplayer]

My wife exceeded the $500 limit and was sent a 1099 by Sofi.

Proceed at your own risk....

[DMFA]

I'd think a finance company would know whether it was reportable/taxable and would send me the relevant documentation. They didn't. I'm not declaring it on my 1040.

[cgossage]

I wouldn't consider it as income and wouldn't report it.

[Dreamgiver]

My CPA (and I) have considered these rebates a discount, therefore not reportable to the IRS as income. Do you report your credit card cash back discounts or your miscellaneous rebates as income? I do not.

[ChristopherMD20]

Well the one thing that I thought I knew about before learning about WCI was refinancing loans because I have done it a bunch of times. I did it multiple times before learning about WCI so I never bothered reading your posts about that subject. No I have read your blogpost I will apply via Sofi. Already at 5 year variable for 2.74% and ~$40k left to go but perhaps with first attending contract in hand Sofi will give me a better rate.

My ignorance was not a reflection on you wise sir and your fabulous site. I was good at living below my means and paying off debt before WCI. Rather I used this site to learn all about retirement planning and investing. I am embarrassed now though...

[The White Coat Investor]

ChristopherMD20 wrote:

You get a $300 bonus for refinancing?! I thought it was just for referring others.

Looks like I may be refinancing from Laurel Road then.

Click to expand...

You're killing me. People tell me I write about refinancing too often, but apparently it isn't often enough.

https://www.whitecoatinvestor.com/student-loan-refinancing/

I've only heard of one lender sending 1099s. I'm not sure it wouldn't be considered like a cash back bonus for a credit card, which is generally viewed as a discount.

[ChristopherMD20]

You get a $300 bonus for refinancing?! I thought it was just for referring others.

Looks like I may be refinancing from Laurel Road then.

[VagabondMD]

I wonder if that is considered a rebate, rather than an income.

[Zaphod]

Hmm...answer is an obvious yes I'd guess. However, I've never received a 1099 for them, and I've never claimed them. Just didnt even think about it, and I've refinanced up to 3 times in a single year (better rates and 300/pop).

[platter]

Thank you.

Do I file it as 1099 MISC on TurboTax if I have not received any forms?

[ACN]

Since the IRS considers any 1099 payment as taxable income, you are required to report your 1099 payment on your tax return. For example, if you earned less than $600 as an independent contractor, the payer does not have to send you a 1099-MISC, but you still have to report the amount as self-employment income.

Now whether the IRS knows or cares is a different story

[Physiciancouple.com]

Yes