Expenses with discounts.

[John410312]

I'm trying to find the IRS Publication that explains how to claim expenses that have a discount. I know you claim the actual amount paid (ie the discounted amount on your payment card statement) not what was on the receipt. I also know customer rebates, like cents back on your gas purchase with a loyalty card etc are not taxable. Someone asked me this question, and while I know the answer I want to be able to show where in the IRS Code I'm getting my information.

TIA

[erjarvis]

spouse died in february .do we enter the full payments made for insurance or the amount less the amount rebated?

same question for long term care hospital. 

if we do need to report rebates where on the turbo form?

[NCperson]

if you are asking about medical expense deductions, you'll report the net of what you paid as a deduction

is that what you are asking? 

[erjarvis]

Do I enter the whole payment  and also the rebate somewhere on the form?

Or, do I ignore entering the rebate  and not entry of the rebate?

Or should I enter the net amount which would be payment minus the rebate?

[erjarvis]

So I should enter the net amount i.e. deduction is the amount that is the rebate is subtracted from the initial payment.

And, there is no requirement to report the actual rebate .

Thank you.

PS If I am wrong please email as soon as you can.