<p>Perhaps none of you used foreighn ATMs enough to trigger a 1099, but they are in fact sent - just like you get one if you are offered a cash premium for opening an account. The bank does is not required to report anything less than $600. but that does not change the fact that these payments are in fact taxable according to US tax code.</p>
<p>The IRS treats rebates differently, depending on how they earned, because some are exempted by the tax code. If you get a rebate that results in a price reduction, you’re OK. But premiums for opening accounts, and rebates for ATM fees are not exempted. Ignorance may be bliss, you those of you who have been getting these rebates have been under reporting your income (as have a significant percentage of Americans).</p>
<p>Just because it’s not reported to the IRS, that doesn’t mean it’s not taxable - the same situation is going to apply to students whose scholarships cover part of room, board, or travel expenses - those parts of the scholarship are taxable, but won’t be reported as such directly to the IRS. Will your student get caught if he doesn’t report the rebates as income? Probably even less likely than being caught for not paying use tax on those OOS online purchases. But something to keep in mind.</p>