1099-K total = Gross sales income
Taxes collected by Etsy from your buyers are not reported on the 1099-K form they issue.
You don't deduct taxes that was not included in your gross income.
To deduct the fees:
- Log into your TurboTax return:
- Click on Federal
- Click on Income and Expenses
- Click the button beside your Self-Employment Info
- Under your income are the expenses. If you need other categories click on “Add expenses for this work”
- Scroll down to Less common expenses
- Scroll all the way to the bottom of the screen and click on "Other miscellaneous expenses"
- Enter a description and the amount you were charged.
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