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Schedule C Question Regarding Charge Cards and Refunds

solosks — Thu, 31 Dec 2020 17:17:19 GMT

For business purposes, in 2020 we charged an airline ticket for $1000. The airline later refunded the $1000 in the same year.

How is the expense reported on the Schedule C? How is the refund reported?

Re: Schedule C Question Regarding Charge Cards and Refunds

Bsch4477 — Thu, 31 Dec 2020 17:21:32 GMT

Easiest path is not to report the expense or the refund since they cancel each out.

Re: Schedule C Question Regarding Charge Cards and Refunds

solosks — Thu, 31 Dec 2020 17:23:46 GMT

OK.

The next question. We deducted business expenses in 2019 that were later refunded in 2020 by credit card. Are those refunds reported as income in 2020.