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tdc
New Member

Can I report discounts?

Under the "income you gave back" section, it asks for $ we've returned to Customers.  We offer discounts to our Customers which are taken at the time an Order is placed.  So as an example, on a $300 dollar Order we may give a 10% discount, so the total of the Order is $270.  We only collect $270 and that's what we report as income.  So are discounts eligible under this section??  It looks like the impact is it reduces the taxes we owe but does NOT change the income in Turbo Tax
1 Reply
Opus 17
Level 15

Can I report discounts?

You can't report the discount as an  expense against income because you never reported the income. If you booked $300 of revenue, you could then deduct the $30 discount as an expense. But since you only book $270 of income, you can't take another deduction for the discount.

You pay income tax on your actual income. Since the discount was never income, you are already not taxed on it.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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