Walmart promotion question

[arlolior]

First off, if I'm posting this in the wrong place I apologize.

I signed up for PM December 16th at Walmart, during which time there was a promotion where you got your next month free. It's about that time to pay my bill and I got a text reminding me of such. When I log onto my account I see a balance of $25.00. This will go ahead and pay for my next month, correct? I don't need to do anything else?

Thanks in advance.

[srlawren]

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@ShawnC13 wrote:

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@slash407  When you are getting a free month it is a free month.  No need for taxes.  As @srlawren mentioned all plans are listed pre-tax the credit is also pretax they cover each other and there is no tax on a $0 balance

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@slash407 @ShawnC13 PM promos like this (as well as all the rewards you can earn) act as price reductions, rather than rebates.  This means, they are applied against the pre-tax cost of the plan, reducing the amount due by a certain amount.  Whatever is left over is the cost to you, and you pay taxes on that (via the payment itself). 

It's like if you go into a store to buy something that's regularly $40 but it's on sale for $15: you would pay $15 + tax--you pay taxes on the discounted price.  In this case, it's a $25 regular price plan and you're getting a $25 off sale price, meaning you're paying $0.  $0 + tax is $0.

This is in contrast to if the promo credits and rewards were treated as rebates, which are applied after tax.  If you go to a store to buy a $40 item but there's an $25 instant rebate, you are charged $40 + tax but then the store applies a $25 credit toward that taxed amount.  ($40 + tax) - rebated amount > ($40 - discount/coupon amount) + tax.

[ShawnC13]

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@slash407 wrote:

are 

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@Lieux wrote:

@RossN no you don't have to pay the taxes next month...your month will be free so you don't need 25$ + taxes...

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are you sure, isn't it just a 25$ credit you get

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@slash407  When you are getting a free month it is a free month.  No need for taxes.  As @srlawren mentioned all plans are listed pre-tax the credit is also pretax they cover each other and there is no tax on a $0 balance

[Anonymous]

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@slash407 wrote:

are 

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@Lieux wrote:

@RossN no you don't have to pay the taxes next month...your month will be free so you don't need 25$ + taxes...

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are you sure, isn't it just a 25$ credit you get

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Um...that's..what..he ..said.

Anyway...Available Funds is after tax. Money gets there via vouchers where you pay the tax at the vendor or pay the tax on your credit card. But the number in Available Funds is after tax. So the promo credit is after tax.

You could think of it as 25 + tax as the actual value of it...but you don't pay that tax.

[srlawren]

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@RossN wrote:

I was wondering, does this include any taxes pending?

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@RossN plan costs shown in the plan builder or in your self-serve account are all 100% pre-tax.  Tax is collected on payments -- whether they are auto-pay top-ups, manual top-ups, or voucher purchases.  The credit resulting from the payment/top-up is credited to your account pre-tax, and your renewal costs is debited from those funds pre-tax, because you paid the taxes on the payment already.  In the case of your free month, your net plan cost for the month is $0, and $0 + tax is still $0.  

[Lieux]

@RossN no you don't have to pay the taxes next month...your month will be free so you don't need 25$ + taxes...

[RossN]

I was wondering, does this include any taxes pending?

[arlolior]

Beautiful! Thank you so much for your help, and so quickly too!

[ShawnC13 · Accepted solution]

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@arlolior wrote:

First off, if I'm posting this in the wrong place I apologize.

I signed up for PM December 16th at Walmart, during which time there was a promotion where you got your next month free. It's about that time to pay my bill and I got a text reminding me of such. When I log onto my account I see a balance of $25.00. This will go ahead and pay for my next month, correct? I don't need to do anything else?

Thanks in advance.

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@arlolior, yes you would have received a credit equal to the value of the plan you activated.  So it looks like you have a $25 plan and if that is the case you are all good.  On your renewal date it will take the money from your Available funds.