Originally Posted by LordX
You will have to forgive me, I am very limited in my tax knowledge.
"If you use your revenue records, which would imnclude the sales dollars (without tax)"
I use those (my records) to report my income (without sales tax) - and the 1099's I receive for actual sub-contracting work (which dont have sales tax on them because sales tax never comes into play with them).
Since this ONE 1099 INCLUDES my sales tax - how can I avoid paying income tax on it? You said: "it goes no where because it doesn;'t belong on the tax return as a deduction at all."
So if I dont treat it as a deduction - how do I treat it in a program like Turbotax?
One last time. Report your sales from your sales documents, cash register tapes, abacus, pencil and paper, excel worksheet what ever you use to keep track of all your sales.
Forget that 1099 it really does not mean anything at all if your sales records already include the sales transaction that is reported by the 1099.
And one more time...should the issue EVER get raised...you simply present to the examiner the documents that total up to the 1099 and point out that you recorded X as sales and paid the tax collected over to the state.