Where to enter "returns and allowances" for Schedule C (2017)?

[steven3]

I see no place to do this in Income & Expenses. It was clear in years past but for 2017 I see no way to enter refunds or "returns and allowances". The instructions for finding "Income You Gave Back" I found when searching are unclear.

[steven3 · Accepted solution]

I was able to find where to enter this.

Go to Income & Expenses then continue to where you enter income and expenses for your business. Click Add income for this work then choose "Rebates/refunds paid. Report any income returned to customers”. "Learn more" by that options says this:

“This is money you received but then gave back to a customer—a refund for a returned item, a rebate, or a discount. This isn't considered income, but it does need to be reported on your taxes.”

Perfect. After doing this, when you go to Business Summary and click on Details by Income, it shows the amount you entered as “Returns and allowances” which is called rebates/refunds when you add it.

[jennaps]

I still don't get the rebates/refunds choice!

[Carl]

That's definitely a different label for it. Back in 2012 or 13 when I had to refund a customer, it was clearly labled "Returns & Allowances" in the desktop version of Premier.

[iyer-vaidy]

I just am not able to find this options. Any suggestions on how to find this would be helpful

[Carl]

@iyer.vaidy perhaps you're not using the online version of Self-Employed as the original poster that started this thread is? That's the only reason I can think of as to why the instructions provided by @steven may not be working for you.

[VolvoGirl]

@iyer.vaidy    @jennaps  Did you ever find it?  They’ve been working on it.  It might be because of the 6 digit Business Code.  Did you enter one?  So far they found it doesn’t show up if you entered 999999

[PT]

It doesn't work for us either. Options end at "uncommon income" there is no 4th button for refund/rebates. Really wish this would get fixed!

[s-driver0513]

Me too!! There is no fourth option for me either!

[PT]

Finally spoke w/ someone on phone. They had NO option except adding this expense to "other expenses". I do not want my profit/loss statement to show zero on refunds and allowances and then have a much larger number in "other expenses" than previous years. The line on profit/loss statement exists for a reason, and TurboTax needs to get this fixed. I don't have any further time to invest in this - so I switched to H&R online. The refunds/allowances option exists on that system and I was able to get self-employed for $60 with a coupon code. Turbotax offered to send us software to do it by PAPER if we would pay for it. No thanks, just fix your system!

[Carl]

A vast majority of the employess providing support (both phone and in this forum) are temp hires for the tax season, and the training they received is not as comprehensive as it really needs to be.
I'm using the desktop verison of Home & Business, which is the same as the online version of Self-Employed. For me, in the "Business Income" section there are four items listed.
- 1099 Misc Income
- General Income
- Other Income
- Income You Gave Back <<-------------------------------------------------------------------

It would appear they've renamed Returns & Allowances.

[s-driver0513]

Carl, Some people (like me) dont have the 4th option at all. Its just not there.

[Carl]

If you're using the online version, then more than likely it's on another screen somewhere. I would expect it to be in the section where you report business income. But expectations aren't always what we think.
Overall though, before reporting it in Misc Expenses, I'd just reduce the business income by the amount that was refunded.

[Carl]

It's in the Inventory/Cost of Goods Sold section.

[steven3]

I found a different way to do what I needed for my situation. My question may not have been clear.