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Hi there, dpfrey66.
Thank you for coming back here to QuickBooks Community. I appreciate you for providing detailed information about your concern. I'll share information to ensure you're able to handle cashback entry.
When it comes to cashback, it depends on how your account or business handles this transaction. If you want to report this cashback on your tax return, this isn't necessary since a discount isn't taxable. However, there may be a time when you have to reduce the amount of a deduction to reflect the discount that a cashback provides. That being said, when claiming deductions for expenses where you are given cash back, you'll only claim the actual price and deduction then split the $5. Which is $4.95 Schedule C Gas and Fuel and $.05 personal expense. The .05 will tag as personal and you're not allowed to claim this as income.
I still suggest consulting an accountant to assist you further in choosing the right way on how to properly handle the cashback. This is to make sure your account stays accurate.
Please refer to this article to see information on how QBSE is designed to help you record your self-employed income and expenses, track mileage, and prepare your Schedule C: QuickBooks Self-Employed Overview.
Know that you can always get back to me if there's anything else that you need. I'll be here for you. Have a good one!
Hi there, dpfrey66.
Thank you for coming back here to QuickBooks Community. I appreciate you for providing detailed information about your concern. I'll share information to ensure you're able to handle cashback entry.
When it comes to cashback, it depends on how your account or business handles this transaction. If you want to report this cashback on your tax return, this isn't necessary since a discount isn't taxable. However, there may be a time when you have to reduce the amount of a deduction to reflect the discount that a cashback provides. That being said, when claiming deductions for expenses where you are given cash back, you'll only claim the actual price and deduction then split the $5. Which is $4.95 Schedule C Gas and Fuel and $.05 personal expense. The .05 will tag as personal and you're not allowed to claim this as income.
I still suggest consulting an accountant to assist you further in choosing the right way on how to properly handle the cashback. This is to make sure your account stays accurate.
Please refer to this article to see information on how QBSE is designed to help you record your self-employed income and expenses, track mileage, and prepare your Schedule C: QuickBooks Self-Employed Overview.
Know that you can always get back to me if there's anything else that you need. I'll be here for you. Have a good one!
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