State Sales Taxes

[duffy4444]

Where on my TurboTax Schedule C do I put what I paid in state sales taxes for my sales at craft shows?

[MarilynG1 · Accepted solution]

The Sales Tax you paid on your craft show sales would be a Business Expense for you, on Schedule C, Line 23. 

If you're using TurboTax Windows, you can enter the amount there directly in FORMS mode.

Or, if you Edit your Business, you'll come to Business Expenses > All Other Expenses > Taxes/Licenses, where you can enter the amount.

Here's more info on Taking Business Tax Deductions. 

[duffy4444]

Thank you so much for your help!

Cheers, Duffy

[ThomasM125 · Accepted solution]

In actuality, sales taxes are not deductible as you are simply collecting them from the customer and remitting them to your state and/or local taxing authority. So, you should report your sales net of sales taxes collected, and simply leave the sales tax off of your return. For instance, if you sold an item for $10 and collected another $1 in sales tax, you would report your sales in TurboTax as $10. The tax you simply collect and then send to the government, it is not income or expense to you.  

[duffy4444]

Thanks for the update and further insight. I will leave it off the return -- better to be safe...

Cheers, Duffy

[Larrye320]

CAN YOU DEDUCT SALE TAXES ON A CAR

[Larrye320]

WHAT ABOUT SALES TAXES ON A NEW CAR/\?

[DoninGA]

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@Larrye320 wrote:

CAN YOU DEDUCT SALE TAXES ON A CAR

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To enter your sales taxes

Click on Federal Taxes (Personal using Home and Business)
Click on Deductions and Credits
Click on I'll choose what I work on (if shown)
Scroll down to Estimates and Other Taxes Paid
On Sales Taxes, click the start or update button

Or enter sales tax in the Search box located in the upper right of the program screen. Click on Jump to sales tax

During the interview you will be asked if you made a major purchase, like a vehicle so answer Yes.