Update 12/14/25: Over the past few weeks, many readers report getting the withheld tax returned to their account, either deposited directly to their Chase business account or via snailmail check.
Original post 4/23/25:
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.
