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Returning Member
posted Feb 27, 2023 4:34:18 PM

Customer Rebates or refunds

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.

0 2 768
2 Replies
Level 15
Feb 27, 2023 4:53:29 PM

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. 

Expert Alumni
Feb 27, 2023 5:00:00 PM

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:

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