The sales tax can be deducted on your Schedule C, self employment income, under Tax and License expenses. Sales tax is not actually part of sales but if it is included on your 1099-NEC you would deduct this from your gross receipts.
In TurboTax Home & Biz:
- Business Tab
- Business income and expense
Line 23
You can deduct the following taxes and licenses on this line.
- State and local sales taxes imposed on you as the seller of goods or services. If you collected this tax from the buyer, you also must include the amount collected in gross receipts or sales on line 1.
- Follow the prompts to enter the sales tax paid
