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KellyD
New Member

Do I, and if so how do I, include state sales taxes as income AND also as an expense....I have a direct sales business for nutrition products. I get charged sales tax when I order products from the company and I charge sales tax when I sell retail.

 
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AmyT
New Member

Do I, and if so how do I, include state sales taxes as income AND also as an expense....I have a direct sales business for nutrition products. I get charged sales tax when I order products from the company and I charge sales tax when I sell retail.

You will include the sales tax that you pay when you purchase the items in the cost of the items.

The sales taxes that you collect are not considered to be income.  They are trust-fund taxes that you collect on behalf of your state.  The only portion that may be reportable as income is the collection allowance that the state gave you (if this applies in your state).  Unless these amounts are included on a 1099 that you received, there is no need to report sales taxes that were collected by you and remitted to your state.

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