Important update 5/24/23: a reader notes that this Swagbucks bank cashout option is routed via a third party service provider called Dots. This is relevant for 1099 purposes as this provider might not get information on what was earned via Buy SB which does not require a tax form and what was earned from things like referrals which do require. Basically, there is a good chance they’ll be sending out a form 1099 if you redeem more than $600 via Dots, regardless of how you earned the Swagbucks. This is similar to how it works with Paypal and is a correction from what we wrote in the article below. Dots will ask you for your SSN/DOB when you hit the $600 threshold which seems to indicate that they plan on 1099ing for this.
Original Post 4/30/23:
Swagbucks has added a Bank Deposit option whereby you purchase a $25 Bank Deposit ‘gift card’. The gift card comes to your email where you can add bank instructions to send the $25 to your bank or brokerage.
Swagbucks $25 Bank Deposit link
Swagbucks always offers a Paypal option with various denominations. The new option can be useful for someone who doesn’t use Paypal. Also, Paypal always counts received payments from Swagbucks toward your 1099-K threshold since they can’t tell which money is taxable. On the other hand, when you redeem for a gift card, Swagbucks doesn’t count non-taxable things, such as when you Buy Swagbucks. This new Bank Deposit gift card is a new option for someone who prefers cold hard cash and doesn’t want to hassle with an unwarranted 1099-k tax form.
It’s a bit of a pain that Swagbucks doesn’t have an option to save a bank directly and that they only allow $25 Bank Deposit gift cards. In any case, an interesting new option here.
Hat tip to Kris
If you’re new to Swagbucks then please read our review. You can also get a bonus of up to $13 by using a referral link.
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