Using Self-Employed version for small catering business, should 2016 income include sales tax collected from customer?

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If total job was $1000.00, but including sales tax charged we collected $1060.00 from client, do we use the $1000 or $1060 as our income amount for Turbo Tax.

TurboTax Self Employed Online

DianeW777Answer

Alumni - Intuit

It just seems the easiest method to include all receipts of income including the sales tax collected, then expense the sales tax amount actually paid to the state.

This makes a clean book to tax return record. Some states provide a discount if the sales tax is filed and paid on time and this eliminates the need to figure out how much you keep if applicable in your state.

Sales tax expense can be added under miscellaneous expenses.

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DianeW777Answer

Alumni - Intuit

It just seems the easiest method to include all receipts of income including the sales tax collected, then expense the sales tax amount actually paid to the state.

Sales tax expense can be added under miscellaneous expenses.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"