I'm a seller on etsy and the shipping fees are deducted from my 'wallet' before income is deposited. How do I account for this?
AI accountant’s answer:
When you're calculating your income for tax purposes, you should include the total amount you earned from your sales, including the part that was used to cover shipping fees. Then, you can deduct those shipping fees as a business expense. So, even though Etsy deducts shipping fees before depositing your earnings, for tax purposes, you'll report your gross income and then take the shipping costs as a deduction. This way, you're only taxed on your net income, not the total amount you earned before shipping costs were deducted.
Correct.
Keeper’s AI Accountant V2
V2 is still a fine-tuned instance of GPT-4. Improvements over V1 include more comprehensive tax code embeddings, and a better chain-of-reasoning retrieval system.