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The 1099-Misc includes sales tax that my business collected. where do I deduct that from my business income
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June 6, 2019
3:47 AM
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Get your taxes done using TurboTax
Generally, sales tax collected is not included in gross income.
Since it a trust fund tax and is being collected on behalf of the state, it is not part of anyone's income (except the state).
However, if you did receive a 1099 that includes the sales tax that was collected, you will need to include this amount in your income. You will then take a deduction equal to the amount of sales tax remitted. The sales tax amount can be included with taxes, or you can add a separate line item under "Other miscellaneous expenses".
June 6, 2019
3:47 AM