When an individual receives a rebate, refund, or other return of money he or she 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.