We had total sales, sch C, of $20,000 in 2023. that amount includes the sales tax collected by us and then sent to the state. do we get to deduct that somewhere

Yes.

You can deduct the sales tax paid over to the State on line 23 of Schedule C - Taxes and Licenses.

from IRS schedule C instructions

 include sales tax collected in gross income on line 1 and then take a deduction on the tax line for sales tax paid. 

Line 23
You can deduct the following taxes and
licenses on this line.
• State and local sales taxes imposed
on you as the seller of goods or services.
If you collected this tax from the buyer,
you must also include the amount collected in gross receipts or sales on
line 1

@mikpenie  part  of the answer depends on the State the business is in.  Assuming that this is a retail business :

(a) For federal purposes  on Schedule-C, your gross income is ONLY the proceeds of the sales  --- not including  the  state sales taxes you collected on behalf of the state.

(b) on the row where you report the  taxes and fees you report ONLY taxes  for operating the business .  Most states  ( I am familiar with MI ) has a  mechanism for  the  retailer  not having to pay sales taxes on  inventory -- thus your "Cost Of Goods Sold" -- COGS-- does not include  any sales taxes.

(c) For State taxes there is usually an area wherein you reconcile  the sales taxes collected on behalf of the state and the Sales Proceeds.

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