What is the reported income?

[fpq808]

Scenario:

Products bought - $70

Shipping - $15.95

Customer tipped - $10.75

General excise tax - $3.30

Invoice total - $100

Customer paid entire invoice total.

1.  What is the income I report for this transaction?

2.  Can any of these be listed as expense vs income?  If so, when?

[gloriah5200]

You will need to enter the income on Schedule C as a sole proprietor...You will enter the $100 as income, the tip of $20.75 is also income.

Expenses:

• Products purchased of $70 +
• 15.95 shipping
• Tax would be $ 3.30

You must enter all the income as income on the Sch C and all the expenses as expenses on the Sch C that are allowable.  Your profit/loss subject to se tax is the net profit between the two.