KathrynG3
Expert Alumni

Deductions & credits

Yes, discounts or cash back rewards are not taxable. To exclude them when they are included on Form 1099-K, follow what @DawnC describes. Otherwise, the Cash Back Rewards will need to be included in the expenses.

 

To enter the discounts/rebates/rewards so they are subtracted in TurboTax:

  • Go to Self-employment income & expenses and Edit/Add
  • At Your 2020 self-employed work summary, select Edit
  • Scroll down to EXPENSES and click in the lower left hand corner, Add expenses for this work
  • Scroll to Other miscellaneous expenses select the toggle, scroll to the bottom of the page and click Continue 
  • Enter a Description in reference to the tax form if you wish, such as Form 1099-K Cash Back from Rakuten, the amount, and Continue

[Edited 01/25/2021 | 12:47 PM PST]

@JenB1900 

@DawnC