Bank of America agreed to pay me $100 within a certain number of days, if I opened an account. I opened the account. Had they paid the money on time, it would have been taxable (as interest). However, they did not pay it and wasted many hours of my time by having me repeatedly call on the telephone and listen to them give new dates that they also failed to meet. Eventually, I filed a complaint with the Better Business Bureau and the bank posted a $100 credit to my account, which is listed in their records as a refund of fees. An actual refund of fees is not taxable (unless the fees were deducted on a prior year's return), but they never charged the fees for which this is a "refund". Is it taxable?
2007-12-22 09:55:35 · 2 answers · asked by StephenWeinstein 7 in Business & Finance ➔ Taxes ➔ United States
It's not a refund of fees. It's taxable. The classification of it as a refund of fees is an error on their part that does not affect the true nature of the funds.
2007-12-22 10:17:30 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
No. Not even enough to consider. IF they send a 1099, you will be taxed.
Chances are little to none.
2007-12-22 18:01:01 · answer #2 · answered by ed 7 · 0⤊ 3⤋