I am pretty certain than courtesy credits when a merchant messes up are considered rebates or discounts on purchase price and NOT TAXABLE. (They are essentially a form of customer service rather than taxable income).
Please advise.
Further, a partial refund also would be NOT TAXABLE since it's just taking money off the purchase price.
Many times, Amazon will NOT refund these smaller amounts to the original credit card and ONLY to your "Amazon Gift Card" balance or maybe a special section for "courtesy credits".
I would assume it doesn't matter where the credit or partial refund goes and that it would still be NOT TAXABLE. Sometimes it goes into and sometimes just directly into your Amazon Gift Card balance.
Please advise.
Example:
Bought a $300 product. Complained about an issue. Caused even more issues. They erroneously refunded the entire $300 order even though they weren't supposed to (Manager put the wrong code and essentially just told me to keep it which was basically telling me to steal it: WRONG). Spoke with them like 5+ times to fix their multiple problems. Their solution was if I pay for it again (which I should), they'd give a $100 Amazon Gift Card for the hassle "please contact us back so we can issue a $100 gift card as compensation for the inconvenience." from one Manager and the person I spoke with later after paying the $300 again, they sent an email with "I would like to advise you that I have processed a refund for $100 to your amazon gift card balance." So I assume this is also either a courtesy credit as "as compensation for the inconvenience" or more likely a partial "refund for $100 to your amazon gift card balance.".
Please advise. Thanks.
