DianeW777
Expert Alumni

Deductions & credits

It depends. Keep in mind that it is a deduction only if you included the sales tax collected as part of your business income.  Technically, sales tax is not income so it's important to know how you reported your income before you amend your return to deduct the expense. In other words, reducing the income by a sales tax that was never included with the business income would be a double unallowed benefit.

 

Many third party payers today do include the full amount collected when issuing 1099s to persons who use their services for money transfers/collections.

 

@Peter Channel 540 

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