Where to deduct Etsy Transaction fees and Listing Fees on the business expense sheet?

[amylucas]

Where do I deduct Etsy Transaction fees and Listing Fees on the business expenses sheet? I believe those are 100% deductible but when I enter them as misc. expenses it does not deduct the full amount from my taxes owed. Help?

[ColeenD3]

Yes, these are miscellaneous expenses. There should be no reduction in amounts. Try placing it under another category such as supplies and see if you get the same result.

[amylucas]

Thank you for replying!

Ok, so why would it not show a reduction in the amount of taxes owed if those expenses are 100% deductible?

[ColeenD3]

I have no idea. That is what I am saying. The expense should not be reduced. Did you click the box that said all the investment is at risk? You can't take a loss if you did not check that box.

[amylucas]

Placing it under supplies also only deducts a portion of that expense. My Etsy fees are significant...around $1400. Where do I put that expense so that it is 100% deductible? Or should I just subtract those fees from my Etsy Income and not worry about listing it as an expense?

[ColeenD3]

Did you look at the at-risk box? Do not just deduct them from the Etsy income. You need to report your total income and then take deductions.

[amylucas]

Where do I find the at-risk box?

[ColeenD3]

You may need to go through Review to find it again. See this post.