Many readers report (1, 2, 3, 4, 5) having funds debited on their Chase Business checking account as the bank is withholding 24% of their bonus to cover the estimated IRS taxes.
As an example, those who did the $500 Chase Business checking bonus are seeing $120 debited to pay the estimated taxes on the bonus. It shows up as a debit for “FEDERAL INTEREST WITHHELD”.
There is often a checkbox to check if you are subject for backup withholdings. Typically, we all check that we are not subject to backup withholding (we pay in the taxes ourselves), and the bank does not withhold. In the case of Chase bank business bonuses the bank is still withholding the taxes, for some reason.
This has never happened to me, but honestly it doesn’t seem like a big deal. Just be sure to leave $120 in the account for them to debit so you don’t go negative, and then keep the payment in mind for when you do your taxes.
Same. $400 bonus became $304 after withholding that was applied a day after bonus.
This happened to me yesterday. I applied for the $400 offer when depositing $2000. 5/27/25 I got the $400 but a few hours later I also got a transaction listed as “FEDERAL INTEREST WITHHELD” for -$96.
$500 business checking bonus paid without any withholding.
This happened on a P2 Business Checking $750 bonus, got the $180 (24%) withheld on 4/1/2025
In late Jan 2025, Chase withheld 24% tax from my bonus for opening a personal checking. Even though I had already filled out a w9 when I opened this account in person at my local branch. Again, I went to my local branch to fill out another w9 and at their behest to preempt them doing the same for my $400 savings + checkings bonus, but when that posted a month later they still withheld another 24% in spite of the new w9 that was completed at the branch instructing otherwise. When I reached out to them they said that I should mail one in to them directly.
P2 had the same thing happen for $400 bonus. After online chat they stated we were a non citizen. Not true. I ended up leaving it alone because like all others, we will just claim when we do taxes.
I did this bonus months ago and had chase had withheld 24% tax from my bonus. I filled out the w9 form in branch and not got my bonus. I gave up at that point since it dont matter much in the end when I file taxes in 2025.
So you asked Chase to withhold but didn’t get the bonus at all? When were you expecting it?
What if the business is a nonprofit corporation, not subject to taxes? Is there a form for nonprofits to file to get the funds withheld returned?
W-9
W-9 isn’t going to get you a refund, and I dont think a 990 will either. I’d try filing an 1120 with no tax due and claiming the refund that way. Or just eat it and move on.
The rate for backup withholding is actually 24 percent.
https://www.irs.gov/businesses/small-businesses-self-employed/backup-withholding#:~:text=What%20is%20backup%20withholding%3F,tax%20due%20on%20this%20income.
I’ll fix that, thx
Either fill out the W-9 form to not withhold income tax or get the tax refund (if you receive a refund) after you file your tax return.