Question

How do I enter "returns and allowances" on Schedule C, line 2?

I've been able to do this in the past, but I can't find the place to record this in TT online.

You enter these on the "Rebates and refunds" line under Self-Employed Income.

To do this please follow these steps:

Within your Federal return, click on Income & Expenses at the top of your screen
On the Self-employment income and expenses line click Edit/Add
Click Edit for the business income you need to adjust
Scroll down and click Add income for this work
Choose Rebates and refunds, includes any income returned to customers and Continue
Describe your line item and enter the amount of your Returns and Allowances