topic Where exactly do you record your refunds on the 1065? Is it line 1b (returns and allowances), or is it supposed to go somewhere else? in Deductions & credits

Where exactly do you record your refunds on the 1065? Is it line 1b (returns and allowances), or is it supposed to go somewhere else?

danielle-51 — Mon, 23 Feb 2026 10:34:28 GMT

Re: Where exactly do you record your refunds on the 1065? Is it line 1b (returns and allowances), or is it supposed to go somewhere else?

Anonymous_ — Sat, 21 Jan 2023 17:21:30 GMT

Where exactly do you record your refunds on the 1065?

Line 1b, particularly if you maintain an inventory.

Re: Where exactly do you record your refunds on the 1065? Is it line 1b (returns and allowances), or is it supposed to go somewhere else?

Carl — Sat, 21 Jan 2023 17:22:47 GMT

"Returns and Allowances" is for refunds that you give back to clients/vendors/customers.

Re: Where exactly do you record your refunds on the 1065? Is it line 1b (returns and allowances), or is it supposed to go somewhere else?

Anonymous_ — Sat, 21 Jan 2023 17:35:54 GMT

Or, specifically:

A sales return is a cash or credit refund you gave to customers who returned defective, damaged, or unwanted products. A sales allowance is a reduction in the selling price of products, instead of a cash or credit refund.