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Im a barber. when i enter my income do i include the booth rent i pay also, and then enter the expense later or do i put what i made after i paid booth rent as my income?

say i made 41,000 but 9,000 was booth rent. do i enter 32,000 as income or 41,000 as income

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2 Replies
Carl
Level 15

Im a barber. when i enter my income do i include the booth rent i pay also, and then enter the expense later or do i put what i made after i paid booth rent as my income?

In a nutshell, your business income is every penny received by the business, from all sources, for any reason, during the tax year. You enter that total as business income.

Then later as you're working it through, you'll enter your expenses which the program will deduct from your taxable business income. You may find that you have more tax deductible expenses than just your booth rent too.

DeniseF1
New Member

Im a barber. when i enter my income do i include the booth rent i pay also, and then enter the expense later or do i put what i made after i paid booth rent as my income?

Given your example, you would enter $41,000 as income and enter $9,000 as booth rent expense.  The IRS requires all the income received for your business to be entered as income.  The amount paid for rent and other expenses you may have incurred are entered as separate expense line items.  

[Edited: 1/23/18|2:15 PM]

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