Where can I deduct sales tax collected from my business in Turbo Tax Self Employed?

[pk]

Are you talking about sales tax that you collected from customers ( on behalf  of the State ) ? or are you referring to sales tax that you paid on material that you bought for your business ?

If the former, you file that outside of your return --- your gross is gross less sales tax collected. You send that in to the State directly -- see your State DOR web site.

If the latter, then your cost of goods includes sales tax you paid for the inventory or work material

Does this make sense?

[darrinstuff]

Yes Sales tax collected from Customers. I already collected and paid state. But looking to enter in Federal so I don't get taxed for it

[pk]

As I said your gross  collection gets reduced by the sales tax collected ( on behalf of the state ) --- thus you are not taxed  on this by the State or the Fed.
For example  if your State sales tax rate is 5%, then your total collection  is changed to your gross  as follows
Net Gross = (Amount collected  / 105)  X 100.   so you will collect $105  out of which $100 belongs to your business and $ 5 goes to State. So your taxable income  before expenses etc., is $100.

Make sense ?

[darrinstuff]

So Turbo tax automatically deducts State Sales tax? Because my 1099s all include it.
here is what help told me.
Just need to know where to find "Other Miscelaneous Expenses" so I can enter it

[darrinstuff]

Generally, sales tax collected is not included in gross income.
Since it a trust fund tax and is being collected on behalf of the state, it is not part of anyone's income (except the state).
However, if you did receive a 1099 that includes the sales tax that was collected, you will need to include this amount in your income.  You will then take a deduction equal to the amount of sales tax remitted.  The sales tax amount can be included with taxes, or you can add a separate line item under "Other miscellaneous expenses".

[pk]

Oh, the 1099 are wrong -- so the above method is good.  No TurboTax will not do it for you --- you have compute the sales taxes collected as an expense  on schedule-C

[darrinstuff]

is Schedule C a different form I have to submit to the IRS? Can I do schedule C through Turbo tax or Online somewhere? Or need to mail in form?

[pk]

Assuming that your business entity is a sole proprietor or a single member LLC, you file schedule-C covering business income and expenses. 1099-miscs usually will generate a schedule-C.   I have assumed that is your case
If on the other hand your business  is a partnership or S-Corp, your filing is different -- you need to use TurboTax business and file the corresponding pass through entity form and generate a K-1  to issue to each of the partners or owners. They then use K-1 to report the in come etc. on their personal return.
So are you a schedule-C filer ? Is this your first year in business?

[darrinstuff]

Yes I am Sole Proprieter LLC second year in business. So where can I file Schedule C??

[pk]

When you enter the 1099-Cs. TurboTax will ask you details of the type of business, etc. and  open a schedule-C. The net income from the schedule-C will go to form 1040 as business income and also open a schedule-SE  ( self-employment version of Medicare and social security except now you pay both the employer's and employee's portion -- total of 15.3% on most of the net ). The it will also put in an adjustment to your gross income ( thus becoming Adjusted Gross income ) equal o 50% of the SE taxes -- so you are treated same as W-2 earners.
Now are you ready to proceed ? or do you want to file for an extension or just don't bother, file as soon as possible , especially if you have been paying estimated taxes  and there at no risk of  interest and penalty ?
What can I do to help ?

[darrinstuff]

Ok Figured all that out. I have filed an extension through Turbo Tax. Question Now is Does that Automatically file State Extension with Idaho? Or do I need to do something with them? Or can I file State Now without filing Federal in TurboTax?

[pk]

No,   once you file for an IRS extension, Idaho honors that-- but to protect yourself , you should make sure that you are not going to owe more than $50 to Idaho -- otherwise pay some estimated tax payment.

If you need more help later, please feel welcome to ask in comments -- most of us do check in all the way till end of October