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

[s-driver0513]

Where did you put it? Under the expenses under “other?”

[Anonymous]

That option is missing for 2021 taxes

[VolvoGirl]

@Anonymous   What is missing?   And are you using the Online Self Employed version or the Desktop Home & Business program?   I can check both.  I have Windows Home & Business and an online test account.

[Q1misery1]

Hi VolvoGirl-

I'm looking for this answer too. I'm using the online self employed version. Added the 1099k and cash from my business, but don't see where I put the discounts and returns. It's the last step and then I'm free, free, free from this arduous task for another year! Thank you-

[GeorgeM777]

You add business expenses in the Self-Employment subcategory under Income & Expenses.  You may not see the specific expense you are looking for, but at the bottom of the expense list, select Add expenses for this work to enter your discount and return information.    

@Q1misery1

[Q1misery1]

Thank you, but I'm referring to when a customer returns an item, and in other instances, discounts given for other sales.  Gross sales are what appear in box 1a on the 1099K, and I need to get the returns and discounts off the taxable amount (gross) because these dollar values never became income. (Merchandise was returned to the business and discounts were given.) Or should I simply subtract the returns, discounts and comps for the year off the gross and input that total?

[FangxiaL]

As @GeorgeM777 pointed out, you can treat the discounts and returns as an expense instead of altering the 1099-K gross income reported to you. The result is the same, without paying taxes on the money you did not make, and without showing discrepancies between the amount reported to the IRS on the 1099-K form and the amount you reported on your tax return. 

@Q1misery1

[Q1misery1]

ok, thank you to both of you! it was confusing to me whether expenses are a dollar for dollar reduction in taxable income, or just a partial reduction.

[rcc2020]

Hi. No matter what number I put under the income section for Refunds and Rebates section - It does not change my net income/loss - meaning the refunds I sent to customers are still being counted as income I made. What am I doing wrong here

[PatriciaV]

Please confirm that you entered this under the Income section (Income You Gave Back) and entered a positive number.