Skip to main content
Level 2
February 15, 2026
Question

Erroneous store refunds

  • February 15, 2026
  • 1 reply
  • 0 views

Hello. I am reposting this question.

 

My question is whether an erroneous store refund is taxable income. In two unrelated instances, I returned merchandise that I had purchased (for personal use, not for a business), and I received a refund for more than I had paid. The first time, I bought something on sale and when I returned it, the store mistakenly refunded me the full price. The second time, my refund was processed twice, so I received double what I should have. Is the extra money I received due to the stores' errors taxable income?

1 reply

LindaS5247
Level 14
February 16, 2026

If you received an erroneous and/or duplicate refund from a store for a personal purchase that you made, it is not considered taxable income and does not need to be reported as income on your taxes. 

 

These refunds bring you back to your original financial condition (plus an error amount), which is not considered to be a taxable gain.



 

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"