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Bank Bonuses Are Taxed (Unlike Credit Card Rewards)

Saturday, March 14, 2026Andrew SchrageView original
Bank signup bonuses are taxable income; you’ll owe taxes on every dollar at your marginal rate. Credit card welcome bonuses are not. The IRS treats card rewards as purchase rebates, not income. A $300 bank bonus in the 24% bracket is worth $228. Calculate the after-tax value before chasing any offer.

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