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New Member
posted Mar 8, 2020 3:47:54 AM

Should I report Income from ibotta? Or yard sale sites?

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1 Replies
Expert Alumni
Mar 8, 2020 4:31:19 AM

You do not have to report yard sale income, unless you sold an item for more money than you paid for it.

 

Please see this answer from WillK regarding Ibotta:

 

The short answer to this kind of question is no.  Rebates, in general, are not taxable income to an individual taxpayer, unless that person first took a tax deduction for the cost of the item(s), when they originally bought the product(s).

That would be true, for instance, where a taxpayer has a business activity, and the rebates relate instead to an expense (i.e., tax deduction) for a good or service used in the conduct of that business.

In that instance, yes indeed -- a rebate on a purchased item or service does have a tax impact.  However, if the item(s) are purely personal in nature, and with personal property specifically, the answer is no . . . for the reason that the underlying expense wasn't tax deductible in the first instance.

In other words, no deduction = no later need for a reversal (i.e., you don't need to report as taxable income) when a rebate is issued to you.  It can safely be ignored, as the rebate is not considered taxable.