Refunds to Customers
Refund amount
Can You Write Off Customer Refunds and Returns?
Short answer: Refunds to Customers — Bad Debt & Losses
Product refunds to customers (reduces revenue).
Records to keep: Keep receipts and document business use. Deductible if ordinary and necessary for your trade or business.
BW-B11-10243
low risk
Refunds to Customers
Refund amount
All Industries
Other Expenses
Bad Debt & Losses
Refunds to Customers — Bad Debt & Losses
BizWriteOffs provides educational information only and is not tax, legal, or accounting advice. Deductibility depends on your specific facts and records. Consult a qualified tax professional.
Business justification
Product refunds to customers (reduces revenue).
Category
- Bad Debt & Losses
bad debt & losses
bad debt losses
refunds to customers