We'd like to help if we could. However.....
How did you obtain income which included sales tax? Does that mean you're operating a business? Sounds like it, since you mention Schedule C. The sales tax you collect on sales is NOT income to you. You report as gross receipts only the sales figure, not including the tax. You're merely holding the sales tax in trust for the state. In short it gets reported no where. The sales tax you collected in December was sent to the state in January, right? RIGHT? You did send it, right? And if you did, perhaps the state awarded you a certain percentage (3% in Georgia, varying percentages elsewhere) as a fee for handling the matter. Just don't forget to report this as income in this year on 2004 schedule c. It goes up top under "other income." ChEAr$, Harlan Lunsford, EA n LA Wed 9 Mar 2005
Yes. You are most likely a cash taxpayer and report the income and expenses in the year that you receive the income or pay the expenses. Missy Doyle
I don't understand your question. Sales taxes are collected at the point of sale when you buy goods subject to the sales tax. I'm in TX which is one of the states that benefit from this new law. When I filed my 2004 tax return, I used the sales tax table amount. I didn't have any large ticket items (new car, boat, etc) to add to the table amount. I haven't filed returns for every state but am not aware of a "sales tax" that is collected via an annual "sales tax return". Maybe you are running a business that collects sales tax and pays the collected tax to the state. This is not the sales tax that can be deducted now in states with no income tax. Mike Lewis, CPA
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