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Mercari 1099-K Sales Tax

Mercari includes buyer paid sales tax in their 1099-K. I understand that you can deduct that sales tax as an expense. I'm just not sure how it would be classified and entered on the schedule C form. Would you classify it under Miscellaneous expense as "buyer paid sales tax" and then enter the amount or is there a different category that it should be classified as and entered? 

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1 Reply
MinhT1
Employee Tax Expert

Mercari 1099-K Sales Tax

Buyer paid sales tax that you (or Mercari on your behalf) repaid to the taxing authority can be deducted as an expenses and categorized as Taxes and Licenses.

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