topic Should tax and shipping fees charged to my clients be excluded from general business income? in Business & farm

Should tax and shipping fees charged to my clients be excluded from general business income?

2Bdazzled — Fri, 04 Dec 2020 00:09:10 GMT

Sometimes I charge tax and shipping on my invoices. These charges show up in my invoice totals. Should these amounts be excluded when figuring out my general business income? This is income not reported on a 1099-MISC, 1099-G or 1099-K. Thanks!

Re: Should tax and shipping fees charged to my clients be excluded from general business income?

Bsch4477 — Fri, 04 Dec 2020 00:28:54 GMT

Those charges are income since you receive the money but if you paid them they are a deduction on your schedule C.

Re: Should tax and shipping fees charged to my clients be excluded from general business income?

Anonymous — Fri, 04 Dec 2020 10:01:00 GMT

i would include them simply because if you were ever audited, the IRS might raise an issue that you have unreported income.