NYS Small Business Owner doubly taxed by state?

[maribank]

Hi!

I am an annual filer. I already paid the state and county through ST-101 tax form. When I enter my gross sales into TT, it charges me again for my state tax, and my federal tax taken seems a bit high, too. Am I entering this in the wrong area? Between filing with the ST-101 and TT, it's essentially taking back 30% of my income back, which doesn't seem right. 

Thank you in advance!

[AliciaP1]

Your ST-101 tax form reports and pays any Sales and Use Tax your business owes to NYS.  

Per NY.gov:

Sales tax applies to retail sales of certain tangible personal property and services. Use tax applies if you buy tangible personal property and services outside the state and use it within New York State.

TurboTax helps you file your federal and state income taxes.  The amounts you paid on ST-101 will be listed under the Taxes and Licenses expense category when you enter your self-employment income.

In TurboTax Online you can enter your self-employment expenses by following these steps:

1. Using the magnifying glass near the top right of the page search for Schedule C
2. Use the Jump to link that shows in the results
3. Click Edit for your business you are wanting to change
4. Scroll down to Business Expenses and click Visit All to get the full list of expenses to enter

Also, see What self-employed expenses can I deduct? to be sure you don't miss any expenses you can claim.

[maribank]

Okay so next question for you.

I was moved from quarterly filer, to annual filer for ST-101, automatically by the IRS because the taxable rate is so low.

My last quarterly filer payment was on 2/28/22; I've entered that information since I made that payment in 2022.

For my annual filing, I made my payment (for the time period of 3/1/2022 through 3/28/2023) in January 2023; I have a seasonal company so I don't plan to work until after that annual period above is mentioned... Do I claim this payment made in January for my 2022 taxes, since it has 2022 payments collected within it, or do I claim this on my 2023 because I made the payment in 2023? 

Thank you in advance for any help or clarification!

[AliciaP1]

No, sales tax is neither income nor expense to your business.  Since it is a pass-through that you are collecting on behalf of the state government (not the IRS) it is recorded as a liability owed when you collect it and the liability is relieved when you pay it.

@maribank