Cash rebates taxed?
Sorry if this is a long post, but couldn't really make it short. Went shopping for a new truck, and amazingly I found one that has pretty much everything I wanted, and very little that I didn't. ...
Forum Discussion
tinstartrvlr wrote:
Dang I can't wait to find out the answer to this one. It just seems really sleazy somehow but I won't judge until I know for sure.
So another thought in this whole mystery, how come we don't get a 1099 and pay taxes on that $100 manufacturer rebate we got for buying that big screen TV, or whatever else we might get a rebate on?
Just sayin....
If your in one of the states with sales tax often a non mail in rebate, like the car rebate, or a instant rebate at costco etc. is not deducted from the sales price when determining sales tax so you pay a state sales tax on the full purchase price pre rebate amount.
Now if it is a mail in rebate, same thing, you are paying sales tax on the pre rebate purchase amount and getting a check back for the rebate.
In both cases you pay sales tax on the rebate amount.
Now I know of no case where you pay federal or state tax on the rebate.
A rebate is NOT income or a taxable event so hence not subject to a 1099 or any other income form AFAIK.
