Tax Form- Giving money?

Question

If i want to give money away from my business to customers who buy from me as a thank you how can i get it back at the end of the year on taxes? What tax forms do i need.? And what kind of company would i be?

Answer 1

What you are describing, Alvin, is a rebate.  For accounting purposes, it is a reduction in total revenue from sales.  On the income statement portion of your tax return, this would be on the line "Returns and Allowances".  Since it reduces the income of your business, it reducesthe tax as well.

  The type of return you file would depend on the form of business you chose:  sole proprietor, using Scheule C, or a corporation, using Form 1120, or, if you have a partner, Form 1065.

Answer 2

you wont get that money back...you will just have less taxable income.

Answer 3

1099 form