Effective Dates: 08/30/2024 - Present Previous | Next

TN 12 (08-24)

SI 00815.250 Rebates and Refunds

A. Policy for rebates and refunds

When an individual receives a rebate, refund, or other return of money the individual has already paid, the money returned is not income.

CAUTION: The key idea in applying this policy is a return of an individual's own money. Some “rebates” do not fit that category. For example, if a cooperative operating as a jointly-owned business pays a “rebate” as a return on a member's investment, this money is unearned income similar to a dividend. Developmental guidelines for interest and dividends are in SI 00830.500.

B. Procedure for rebates and refunds

1. General

Unless you have reason to question the situation, obtain the individual's statement either signed or recorded on the Report of Contact page that a rebate or refund of money is a return of money already paid and do not count it as income.

2. Questionable situation

In questionable situations, obtain any documents in the individual's possession, and contact the source of the payment, etc., to verify that the payment is a return of money already paid. Document the file per GN 00301.285 through GN 00301.289.

C. Example

Rose Woods, an elderly Supplemental Security Income recipient, pays property taxes on the home they live in. Because of Rose's low income, the city government returns part of Rose's property taxes in the form of a check. This return of money already paid by Rose is not income.

D. Reference

SI 00830.705 Refunds of Taxes Paid on Real Property or Food

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0500815250
SI 00815.250 - Rebates and Refunds - 08/30/2024
Batch run: 10/08/2024
Rev:08/30/2024