Like the title says, from the filing process and tax questions to tax policy and reform, you can search and share All Things Tax here. This is the place to find answers to all your general questions that don't fall under the other categories. And just a reminder: questions about software or online filing should be posted in DIY Products.
12-19-2017 01:41 PM
I participate in a few on-line sites that offer cash rebates for either shopping, or playing on-line games.
This year, I became homebound and ended up spending a lot of money on the gaming site....GSN.com (PLEASE NOTE: This is NOT A GAMBLING SITE), I had initially joined GSN.com through another site that gave me like $5 for joining,
I've always received a few dollars in deposit rebates from my deposits to GSN.com, but this year I deposited TONS of money and have already received over $2,000 in three separate rebate checks that I've requested. (NOTE: this rebate money is based solely on how much I deposit into my account. It has NOTHING to do with what game I play or whether I win or lose. When I deposit $200 in my account for future use, I receive an e-mail the next day advising me that $36 has been credited to my "rebate" account)
Because each check was over $600, I was required to submit a W-4 (?) form before I could request my first check.
Does this mean that the money I received back from them is now taxable?
I would wonder if those receiving money back from E-Bay.com (where you earn a percentage of your purchases back for shopping at on-line retailers.
Any help would be greatly appreciated. Thank you
12-19-2017 04:48 PM - edited 12-19-2017 04:50 PM
You ask, "Does this mean that the money I received back from them is now taxable?"
Based on your discussion, my answer is yes. Despite being called a rebate, this money is not returning part of the money you deposited, it is giving you a dividend for the deposit. Apparently, the GSN site is acknowledging the tax implication by requesting you to file Form W-4. You will probably be receiving a 1099-misc form in January.
01-12-2018 03:23 PM
Welcome to H&R Block Community!
In general, rebate from purchasing merchandise is considered as price reduction, so, it is not taxable. However, if the site treat it as prize, then you will receive form 1099-misc and you need to report it as Other income. Hopefully, that clears it out. Feel free to let me know if you have any further questions.
Tax Research Specialist