Store Refunds

Forum|Forum|11 months ago
April 25, 2025
1 reply
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I was wondering if a store refunds your money is that considered taxable income?

Also, if you paid a medical bill and later get a refund from the medical provider because your health insurance covered the procedure is that considered taxble income?

PatriciaV

Employee

No, refunds for personal purchases and services are not taxable income because the purchases aren't reported on your tax return. However, if the purchases are reported as business expenses, then you would include the refunds (or simply not report the purchases).

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xmasbaby0

Employee

And as for the medical expense question-----if you itemized medical expenses on a tax return and included that expense, but were later reimbursed for the expense by insurance, then the amount reimbursed would be taxable. But you are only supposed to enter medical expenses that you already paid out of pocket. You should never enter medical expenses that are outstanding.

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