topic Re: How do you write off chargebacks from customers? in Get your taxes done using TurboTax

How do you write off chargebacks from customers?

dcamp0202 — Tue, 08 Oct 2019 15:50:12 GMT

Re: How do you write off chargebacks from customers?

VolvoGirl — Tue, 08 Oct 2019 16:07:23 GMT

Like what? Refunds you gave? It depends.

Not unless you already included it as income first. You can't deduct income you never received. You will just have less income to be taxed on. You take the loss by still deducting all your actual expenses.

There is line 2 on schedule C for returns and allowances.

Re: How do you write off chargebacks from customers?

dcamp0202 — Tue, 08 Oct 2019 16:26:50 GMT

So I got a bunch of 1099-K from Stripe - they don't deduct processing fees, chargebacks, etc. Can I just go through my Stripe account and use the net volume as reported income since that does deduct the fees? The 1099-K they send is gross volume.

Re: How do you write off chargebacks from customers?

Critter — Tue, 08 Oct 2019 17:00:55 GMT

Ok ... then you will report the gross income and then enter all the expenses in the correct categories as you run across them in the interview.

Re: How do you write off chargebacks from customers?

dcamp0202 — Tue, 08 Oct 2019 17:33:23 GMT

Got it. My next question is filed for an extension and sent in an estimated amount - does that amount goes towards what I actually owe?

Re: How do you write off chargebacks from customers?

VolvoGirl — Tue, 08 Oct 2019 17:34:34 GMT

Yes. If your extension payment did not automatically show up on 1040 Schedule 5 line 71 which goes to 1040 line 17 you need to enter it. So make sure it's not already there before you enter it!

You can type estimates paid in the search box at the top of your return and click Find and it will give you a link to Jump To the screen where you enter Extension Payments.

To enter the amount you paid with an extension (including state extension) go to
Federal Taxes (or Personal for desktop H&B version)
Deductions and Credits
Then scroll way down to Estimates and Other Taxes Paid
Other Income Taxes - Click the Start or Update button

Next page second section Payments with Extension
Either Visit All or Click Start or Update by the extension you paid

Re: How do you write off chargebacks from customers?

dcamp0202 — Tue, 08 Oct 2019 18:04:57 GMT

Found it. I did pay estimated taxes but it's not showing in there - I might have used a different account on accident.

Re: How do you write off chargebacks from customers?

dcamp0202 — Tue, 08 Oct 2019 23:42:56 GMT

Another question - since I sent in estimates earlier this year. Now that I'm about to pay what TurboTax says I owe - will I get refunded if i'm sending in too much? Or since im self employed getting 1099-K's they keep the money?

Re: How do you write off chargebacks from customers?

Critter — Wed, 09 Oct 2019 14:13:01 GMT

The tax return is your final accounting to the IRS ... if you over paid the tax bill the excess is either refunded ( no matter what you do for a living ) OR you can choose to apply the refund to the next tax year's estimated payments.

Re: How do you write off chargebacks from customers?

Critter — Wed, 09 Oct 2019 14:14:39 GMT

If you made any payments they should be listed on your return ... if you filed it already without all the payments the IRS should catch the mistake ... watch to see if they do.