Question

sales taxes

Forum|Forum|5 years ago
May 2, 2021
1 reply
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in my little business i collect sales tax when i sell something. then i pay them to the state. the amounts aren't much, but i can never figure out where to enter them. it seems that my Schedule C would be the appropriate place, but nowhere during entry of that form does it tell where those taxes (both collected and then paid) should be entered.

D

DavidD66

They don't need to be reported on your tax return. The tax you collect is not revenue, and when you remit it, it is not an expense. If you wanted to include it, you could include the money collected in your revenue, and then the tax paid under "Taxes and Licenses" on Schedule C.

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