Rebates and Discounts
Retailers may offer various rebates or discounts to induce you to buy their products. You may receive an immediate price reduction or, if you submit paperwork, you can get a check in the mail. These rebates and discounts are not taxable to you.
The receipt of a check representing a rebate for purchasing an item is not income. For instance, if you buy a car, you may be able to apply a $1,000 manufacturer’s rebate to the purchase price of the car, saving you $1,000 on the spot. Of, if you purchase a computer within a certain time, you may be able to send in a copy of your receipt and proof of purchase to receive a check payable to you (often you have to wait six to 12 weeks for this check).
Either way, the IRS says this rebate arrangement doesn’t produce any taxable income for you. Instead, it’s as if the rebate simply reduced the price of the item you purchased.