How to report Etsy refunds on Turbotax?

Forum|Forum|3 years ago
March 5, 2023
1 reply
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Etsy Refunds are obviously not profit and so should be deducted from the gross sales amount in 1099-K. How do I report this on Turbotax? Is it under 'business expenses'? If so, which sub category?

Also which category is 'Etsy seller fees' reported under?

Thank you for your help!

TurboTax Self Employed Online

ErnieS0

In answering your question, I’m assuming you are operating a business, and this is not income. Enter Etsy refunds in the income section as Rebates and refunds.

Type sch c in Search (magnifying glass) in Search
Select Jump to sch c
On “Here’s your [work] info, select Add income for this work
On “Let's enter any additional income for your [xxxx] work, choose Rebates and refunds

Rebates and refunds is money you received but then gave back to a customer—a refund for a returned item, a rebate, or a discount. This isn't considered income, but it does need to be reported on your taxes.

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