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Is my SOFI refinancing bonus taxable income?

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  • okayplayer
    replied
    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.

    Leave a comment:


  • okayplayer
    replied
    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?

    Leave a comment:


  • The White Coat Investor
    replied
    It's a $600 limit.

    Leave a comment:


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

    Proceed at your own risk....

    Leave a comment:


  • DMFA
    replied
    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.

    Leave a comment:


  • cgossage
    replied
    I wouldn't consider it as income and wouldn't report it.

    Leave a comment:


  • Dreamgiver
    replied
    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.

    Leave a comment:


  • ChristopherMD20
    replied
    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...

    Leave a comment:


  • The White Coat Investor
    replied




    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.

    Leave a comment:


  • ChristopherMD20
    replied
    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.

    Leave a comment:


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

    Leave a comment:


  • Zaphod
    replied
    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).

    Leave a comment:


  • platter
    replied
    Thank you.

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

    Leave a comment:


  • ACN
    replied
    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

    Leave a comment:


  • Physiciancouple.com
    replied
    Yes

    Leave a comment:

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