Ecommerce fees, shipping, and state sales tax deduction

[Javafuel]

I'm using Turbotax Home and Business to file my 1st year sole-member LLC ecommerce business. Where do I deduct the followings in the Business Income and Expenses?

1. Transaction fees (Strip, Amazon Pay..etc) 

2. Free shipping cost.

3. CA sales tax, which the business has collected. 

Thanks

[SabrinaD2 · Accepted solution]

Here's how you can deduct the specified expenses in TurboTax Home and Business for your sole-member LLC ecommerce business:

Getting Started

1. Log in to TurboTax Home & Business.
2. Open or continue your return.
3. Indicate you are self-employed: This will ensure TurboTax automatically creates Schedule C for you. If you missed this step, you can add it by going to the income section and adding "Self-employment income".

Navigating to Schedule C

1. TurboTax Online/Mobile: Go to Schedule C.
2. TurboTax Desktop: Search for Schedule C and select the "Jump to" link.
3. Answer Yes to "Did you have any self-employment income or expenses?" and follow the prompts until you reach the "Select any expense categories you have" screen.
4. Select your expenses, then click Continue.
5. If you've already worked in this section, select Edit or Review next to your business.
6. Then select Start or Edit next to an expense type that you had.
7. Enter your expense description and amount, and follow the onscreen instructions.
8. Select the categories you need to enter your expenses including the following:
   1. Transaction Fees (Stripe, Amazon Pay, etc.): Deduct these as Other Miscellaneous Expenses.
   2. Free Shipping Costs: Deduct these under Other Miscellaneous Expenses.
   3. Sales Tax Collected: Report this under Taxes and Licenses.