CD Settlement and Taxes

[my3kids]

For those that got the $13.XX refund from the cd music settlement, have you determined if it considered income, or not since it essentially a refund for over payment. I have the letters that come with the checks in my tax box, so I am assuming in the spring there was some reason I thought I needed to keep it.

 

[tasassy]

I already did my taxes, and totally forgot about that, at least I remembered my jury duty pay. Sorry, can't help you. Did we have to put in our SSN #? Can't remember, if not, there is no way to trace you. Now that I've written this, watch me get audited

 

[Cindy B]

Count me in as forgotton as well. I do tons of rebates so I may have just considered it a "rebate".

 

[cindy0519]

As a general rule under Internal Revenue Code § 61 "gross income means all income from whatever source derived". Certain items of income are specifically includable under this section and certain items of income are specifically excludable. Based on your breif description it seem that this would fall into neither category and if it is considered income would be "other income" reportable on line 21 of Form 1040. In most instance, when an individual is paid (recieves income) on a untaxed basis - if this income is greater than $600 it is reported on a Form 1099.

However it seems to me that if this is just rebate of an overpayment you made, then it would not be income. Also it is far from the $600 limit so no worries about not reporting it as income.