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larktam
Returning Member

Line 23 Schedule C - State Sales Tax paid - Business

I am using the TurboTax Home and Business. Can I subtract the CA Sales tax paid from the Gross Income for my business?   Under the  Taxes and Licenses Expenses, it is not listed.  How do I post?

 

If you look at the IRS instructions for Schedule C, states tax paid can be included on line 23 if it was included in gross income.

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BillM223
Expert Alumni

Line 23 Schedule C - State Sales Tax paid - Business

Even though it is not explicitly listed, enter sales taxes under Taxes and Licenses (line 23).

 

Consider it a "Any other taxes imposed by city, state, county in order for you to conduct business".

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5 Replies
BillM223
Expert Alumni

Line 23 Schedule C - State Sales Tax paid - Business

Even though it is not explicitly listed, enter sales taxes under Taxes and Licenses (line 23).

 

Consider it a "Any other taxes imposed by city, state, county in order for you to conduct business".

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

larktam
Returning Member

Line 23 Schedule C - State Sales Tax paid - Business

Will TurboTax update that in the future? I didn't include the state sales tax paid the previous years because it was not listed as an example.

BillM223
Expert Alumni

Line 23 Schedule C - State Sales Tax paid - Business

I will forward your suggestion.

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larktam
Returning Member

Line 23 Schedule C - State Sales Tax paid - Business

Thanks! It will help Business owners reduce their federal tax liability since the state tax was paid.

 

 

https://www.irs.gov/instructions/i1040sc

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 also must include the amount collected in gross receipts or sales on line 1.

BillM223
Expert Alumni

Line 23 Schedule C - State Sales Tax paid - Business

Yes, I am aware of that instruction, and we have told users for years to use line 23. 

 

As for the Learn More examples, I will point that out. Thanks.

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