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"Returns and Allowances" on Schedule C
I started selling online recently and I issued customers full refunds for items they sent back or that were damaged. I understand those would defeinitely be included in Line 2 for Returns and Allowances on Schedule C.
I wanted to confirm if the following transactions would also be categorized as Returns and Allowances on my Schedule C form or not:
- Partial refunds for shipping overages alone.
- Cancelled Orders that I never sent out but that still have a refund transaction from the online selling site I have to account for.
If they aren't caregorized as Returns and Allowances, how would I categorize them correctly? Thank you
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‎October 11, 2022
10:33 PM