<p>CTScoutmom–you are talking about two separate things. The rebate or the free airline miles is “income” in the sense that you did not pay anything for those miles yet you got cash or cash equivalent for signing up for the card. For the ATM fees, you PAID that fee out of your pocket and the bank is just paying you back for those fees since you can’t decline to pay the fee at the ATM. That would be like saying that you need to issue a 1099 if you paid for lunch for a friend because he forgot his wallet and he paid you back the next day. The reimbursement is not a rebate. A “tax advisor” with what kind of background??</p>