Report sales tax separately if gross income includes sales tax?

[cindylocalbag]

If my gross business income includes the sales tax in the sales amounts, do I need to extract that sales tax and note it somewhere else on the Schedule C???

[PeterM · Accepted solution]

Yes, if the sales tax is included in your Gross Income, you can just list the actual amount of sales tax as a business expense. You can include the amount in the "Taxes and Licenses" category (see screenshot below).