topic Customer Rebates or refunds in Self employed

Customer Rebates or refunds

Rodneylee — Mon, 23 Feb 2026 11:24:48 GMT

Can Counselor services that are discounted be deducted? Example, service rate is $150 but insurance will pay $75 or client can only pay $75, so give them a debate of $75 so the client doesn't need to pay out of pocket.

Re: Customer Rebates or refunds

Bsch4477 — Tue, 28 Feb 2023 00:53:29 GMT

You can’t deduct your discount from a service. On the bright side you don’t have to pay tax on the income you didn’t receive.

Re: Customer Rebates or refunds

HelenC12 — Tue, 28 Feb 2023 01:00:00 GMT

No, you cannot claim income of $75 and a discount of $75 to net you zero income.

You may report your income one of two ways:

You would enter the $75 income that you earned, or
You may claim income of $150 and a discount of $75 which nets to $75 income.