I have usually had good experiences with Kohl's when it comes to returns. However, yesterday was a bit different. I bought my son some oxford cloth uniform shirts for school back in July. I saved the receipts. They were buy one get one half off. The receipt said return value was $18+. One of the shirts unraveled at the seam on the side after being washed 3 times. I took it back and looked for another shirt to exchange it, but they had none in his size. So I asked to return it for credit. The lady said the computer wanted to only give me $3 because I used Kohl's cash. So that would mean I would lose the full amount of my Kohl's cash. There should be some way to over ride this in the event that the merchandise is defective and they don't have a replacement. I ended up exchanging for a size smaller. I am planning to take that shirt to another kohls and see if they will exchange it for the right size, since I think he will outgrow it too quickly.
So while they will probably refund you some money, don't count on getting the full sale price if you used any Kohl's cash to pay for it.