Was the rebate disclosed to all parties in a form of an addendum, and did that rebate appear in the closing statement? If so there is no tax that the agent pays on it, because this is a portion of her commission that she won’t earn and it won’t appear in her 1099. In this case it is not considered income for you.
BUT, if she gave you a check at closing and it doesn’t appear in the ALTA closing statement, she is actually giving you a miscellaneous income, after she pays taxes on it. And she should send you a 1099, otherwise it would be considered a “kickback” and no more a rebate. And this is completely illegal. A rebate to be legal must be disclosed to all parties and appear in the closing statement.
