I sell books on Amazon. I plan to donate 100% of the proceeds from the sale of one of my books to Phoenix Childrens Hospital. How do I handle this on my tax return?

[Critter]

If you are a sole proprietor filing the income on a Sch C then all the income and expenses will be reported on that form.  Any charitable donations are personal and are deducted on the Sch A and NOT on the Sch C.

[Opus 17 · Accepted solution]

It's treated as two separate events.  You sell books as usual and report the income on schedule C.  You can deduct your expenses, if any (selling expenses, other costs) and report the net income on form 1040.  Then, cash donations to charity are an itemized deduction on schedule A, no matter where the cash came from.  Unfortunately, this does not reduce your net profit subject to SE tax.