Coupon that is basically like a gift card taxable?

[shanesnh]

Sorry for the bad Google Translate image but this was basically a 10,000 KRW "coupon" (it uses that word) that I won on some Instagram event lottery thing the company as doing. I know usually a coupon isn't taxable and if you have to spend money to "get" money, it's like a rebate and not taxable AFAIK, but this doesn't seem to have any minimum spend and I guess you wouldn't need to spend money to use it (if you were able to find something 10,000 KRW or less).

It only has a one-time use and any leftover value is forfeited. I'm thinking it's more like a won a gift card (or similar) in the form of a coupon code so I'd imagine I should report it?

Thanks.

(Coupon was already used so not worried about the code in the image)

[Opus 17]

Coupons and other vendor discounts are not taxable under US law, even if you "win" it.  The vendor can charge you whatever you mutually agree is the price for the product or service.  If you pay less than "list" price, or you pay less than other customers, that is not a taxable income or benefit.

[shanesnh]

Thanks @Opus 17. I thought so. Is that also true if it brings the price to zero? That's why I asked on this one cuz it's a coupon code but functions kind of like cash without any limit and I guess could have allowed someone to get their whole order free if it was under the 10,000 KRW total on the coupon.

I paid more than that and just got a discount for the order myself lol.

[Opus 17]

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@shanesnh wrote:

Thanks @Opus 17. I thought so. Is that also true if it brings the price to zero? That's why I asked on this one cuz it's a coupon code but functions kind of like cash without any limit and I guess could have allowed someone to get their whole order free if it was under the 10,000 KRW total on the coupon.

I paid more than that and just got a discount for the order myself lol.

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Yes, a vendor can give something to you for free and that is not taxable income.  

It would only be taxable income if you provided some goods or services in return, then it is income to you whether they pay cash or in-kind (barter).  For example, if you are a mechanic and you agree to fix the dasher's car in return for some free food.