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Get your taxes done using TurboTax
@paris37 UPDATED
EDITED MY RESPONSE. CORRECTED BELOW:
IRS requires a 1099 for all amounts over $600.
Yet IRS says:
Taxpayers will make purchases, as a result of those purchases, will be entitled to receive rebates…. The portion of the purchases that taxpayers can…receive back in cash…does not constitute gross income to taxpayers. It is instead considered a reduction in the cost of the items. Any energy credits being taken, you would reduce your cost of the item by the rebates received.
When entering the 1099 misc indicate that it is "IRS considers rebates a Reduction of cost" Continue and say it is not related to your job. say no it did not involve an intent to earn money.
Then you will enter less common income 1099 misc again and make an adjustment for it:
During entry for the 1099misc
- go to the federal income section
- scroll to the bottom
- Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description IRS considers rebates as reductions of cost
- Amount, enter your amount as a negative
- continue
I found this today.
"
IR-2024-97, April 5, 2024
WASHINGTON — The Department of Treasury and the Internal Revenue Service today issued Announcement 2024-19PDF that addresses the federal income tax treatment of amounts paid for the purchase of energy efficient property and improvements.
Generally, taxpayers who receive rebates for the purchase of energy efficient homes will not include the value of those rebates as income on their tax returns, however they will need to reduce the basis of the property when they sell it by the amount of the rebate.
The Inflation Reduction Act (IRA) statutory language describes performance-based incentives and electrification product subsidies as “rebates.”
Announcement 2024-19 provides that amounts received from the Department of Energy (DOE) home energy rebate programs funded through the IRA will be treated as a reduction in the purchase price or cost of property for eligible upgrades and projects. Accordingly, the consumer that receives an IRA rebate will not be required to report the value of the rebate as income.
Additional information about energy-related tax benefits under the Inflation Reduction Act, such as energy efficient homes, can be found on IRS.gov."
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