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Under what expense category do you input sales tax paid for home business

 
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FaithY
Expert Alumni

Under what expense category do you input sales tax paid for home business

You can enter the sales tax you collected from customers and then paid to the taxing authority under Less common expenses, Other miscellaneous expenses or under Taxes and Licenses. The Other miscellaneous expense section and the taxes and licenses section will allow you to enter a description of the expense and the amount. (click on the screenshots below for visual references). 

Click the drop down arrow next to Less common expenses, and scroll down until you see Other miscellaneous expenses at the bottom of the list. Click in the circle next to Other miscellaneous expenses and click Continue.

Note: If your gross sales include sales tax, and if you have already subtracted the sales tax collected from your gross sales, do not make an expense entry on Schedule C as it is already being accounted for.

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