Deduct refunds from income ebay

[grantbt]

Where do I enter the refunds I gave for items returned for my eBay business? This is my first time using TurboTax Self Employed and I only have a couple of returns but I'd like to account for them somehow.

[grantbt]

I'm using cash method, no inventory. I see on Sched C there is "returns and allowances". If I add a line item in income and call it returns and allowances and put in a negative number, will it go to line Part I Income, Line 2, Returns and Allowances?  And what do people that perform a service do for refunds?

[grantbt]

Or should I remove them from Income?

[IreneS · Accepted solution]

In TurboTax Self-Employed, the program refers to "returns and allowances" as "refunds and rebates."  To enter  returns in TurboTax, please follow these steps:

1. In your return click on Income and Expenses and then click the Start/Revisit box in the Self-Employment section.
2. On the Your 2019 self-employed work summary screen, click on Edit next to your business.  
3. On the Here's your [business] info screen, click on the box Add income for this work.  
4. On the screen, Let's enter the additional income for your[XX] work, mark the radio button next to Rebates/refunds paid and click Continue.  
5. On the next screen, Tell us about refunds and rebates for your [XX] work, enter the description and amount of the refunds.  You can just enter a total if you wish or you can click Add another row for additional lines. 

[Edited | 3/18/2020 |  12:04 am PDT]

[grantbt]

Yay, thank you!!