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2Bdazzled
New Member

Should tax and shipping fees charged to my clients be excluded from general business income?

Sometimes I charge tax and shipping on my invoices. These charges show up in my invoice totals. Should these amounts be excluded when figuring out my general business income? This is income not reported on a 1099-MISC, 1099-G or 1099-K.  Thanks!

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2 Replies

Should tax and shipping fees charged to my clients be excluded from general business income?

Those charges are income since you receive the money but if you paid them they are a deduction on your schedule C. 

Anonymous
Not applicable

Should tax and shipping fees charged to my clients be excluded from general business income?

i would include them simply because if you were ever audited, the IRS might raise an issue that you have unreported income. 

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