View Full Version : 1099 does not match P&L
jlicea422
May 6, 2014, 11:35 AM
My 1099 does not my match my profit & loss, because the 1099 from my merchant includes sales tax and tips to the employees, what should I do?
Should I expense the sales tax and tips?
ebaines
May 6, 2014, 12:37 PM
Please clarify - are you talking about a 1099-K for payments you received from credit card transactions? Yes, the form will incude tips your customers may have paid via credit card and sales tax that were included in those payments, so you deduct tips paid to employees and sales tax paid to the state/county/municipal government as expenses in your business.
jlicea422
May 6, 2014, 01:15 PM
Please clarify - are you talking about a 1099-K for payments you received from credit card transactions? Yes, the form will incude tips your customers may have paid via credit card and sales tax that were included in those payments, so you deduct tips paid to employees and sales tax paid to the state/county/municipal government as expenses in your business.
The reason I ask is because I read on the IRS web that sales tax should not be expensed because they are not an expense to me?
AtlantaTaxExpert
May 6, 2014, 04:30 PM
If the sales tax is added to the Form 1099-MISC as income, then it IS an expense that must be claimed to offset that income.