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1099-k includeds sales tax collected

the Paypal 1099-K includes sales tax I collected for the state of CA. But I don't keep this money, I have to pay it to the State Board of Equalization. I use Turbo Tax to file, is there a place in Turbo Tax I can deduct sales tax collected so I don't have to pay tax on it as part of my income? Any help would be greatly appreciated ;)

11 Responses

yes, you would put this on your schedule C as a deduction for "taxes paid"
We used Tax Cut, but if I remember correctly there was a place for that deduction somewhere in the "other business expenses" section.

Not sure if that helps in Turbo Tax
I don't use tubro tax but I deduct it on the line for taxes and licenses. On the paper form it is line 23 on schedule C.
Sounds like you need to call turbo tax and have one of them walk you thru it.
The 1099-k is your gross amount, you will enter your cost of goods sold and there is a place I believe to enter any tax you already paid. That is where this will go.
Lego, that's it
Lego - do I just add it as a deduction and write "taxes paid" or do I have to say "Sales Tax collected and paid to BOE" in other words to I have to clarify to whom the taxes were paid to?

Also, do I enter the whole amount I collected for 2011 (even though I don't have to pay it until July 31st)
You enter the amount you actually paid in 2011. What you have collected but not paid is not an expense yet. You will continue to report it as part of gross income.
Thanks trendypillows = )

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