I have a negative entry on my other expenses of my sch c. I tried to find in my quickbooks and the other expenses entry on the program but can't find where the number is coming from. Its categorized as "Transaction/Processing fees"
Clarify please. Was the entry imported from QuickBooks? What kind of business is it?
@ConnerJM
I dont know if it is an entry from quickbooks or not. That is what I am trying to figure out. This figure isnt showing up in my entries in turbo tax. I have an appliance repair business.
Usually "Transaction/Processing fees" would be the fees you pay for utilizing a merchant processing service (credit card charges) such as Square or PayPal. You may want to categorize them as Bank Fees or Miscellaneous Expenses.
Ok. I dont get an error during review but I have already a line item on other expenses of the schedule C for my square fees. Will a negative number in this part cause a rejection from the IRS?
A negative number will not necessarily cause a rejection from the IRS. But, having a negative number in a section that is usually being subtracted from your income will result in the negative amount being added to your income instead.
Since it was labeled transaction/processing fees and it was reported as a negative entry, maybe it was a refund to you of a transaction/processing fee that you paid.