| Discussion Forum: Thread 315920 |
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| | | Author: | runner.caller  | | Posted: | Jan 18, 2022 11:30 | | Subject: | Customer paid sales tax on 1099 | | Viewed: | 174 times | | Topic: | Selling | |
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| Can anyone that received a 1099 from paypal chime in on if the sales tax that
is collected and then deducted as a "partner commission" is also deducted from
the taxable income on said 1099?
Or do we need to track that separately via the order export form? And treat it
as an expense for the Schedule C?
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| | | | | Author: | peregrinator | | Posted: | Jan 18, 2022 11:36 | | Subject: | Re: Customer paid sales tax on 1099 | | Viewed: | 44 times | | Topic: | Selling | |
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| In Selling, runner.caller writes:
| | Can anyone that received a 1099 from paypal chime in on if the sales tax that
is collected and then deducted as a "partner commission" is also deducted from
the taxable income on said 1099?
Or do we need to track that separately via the order export form? And treat it
as an expense for the Schedule C?
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I've not received my 1099 yet but I think I remember from discussions last
year that sales tax appears on the 1099 and that you should deduct it as an expense.
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| | | | | Author: | cosmicray | | Posted: | Jan 18, 2022 12:09 | | Subject: | Re: Customer paid sales tax on 1099 | | Viewed: | 62 times | | Topic: | Selling | |
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| In Selling, runner.caller writes:
| | Can anyone that received a 1099 from paypal chime in on if the sales tax that
is collected and then deducted as a "partner commission" is also deducted from
the taxable income on said 1099?
Or do we need to track that separately via the order export form? And treat it
as an expense for the Schedule C?
|
Based on what I received for 2020, the payment service 1099-K reports gross sales.
That is basically a sum of the gross amount of each payment, before any amounts
are deducted. You need to track all the various amounts (e.g. BL fees, sales
taxes, etc) for your schedule C.
disclaimer: I am not an accounting or tax return specialist, and this is based
on what I had to deal with in 2020. YMMV.
Nita Rae
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| | | | | Author: | tEoS | | Posted: | Jan 18, 2022 12:40 | | Subject: | Re: Customer paid sales tax on 1099 | | Viewed: | 60 times | | Topic: | Selling | |
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| Leave taxes to those from Texas, it's in the name after all.
In Selling, runner.caller writes:
| | Can anyone that received a 1099 from paypal chime in on if the sales tax that
is collected and then deducted as a "partner commission" is also deducted from
the taxable income on said 1099?
Or do we need to track that separately via the order export form? And treat it
as an expense for the Schedule C?
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USA, South Dakota
