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Dr. Fiona Chen
Dr. Fiona Chen, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 482
Experience:  Former IRS Revenue Agent
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I am trying to fill out a Illinois ST-1 form. In step 1 line

Customer Question

I am trying to fill out a Illinois ST-1 form. In step 1 line A I entered the $ amount of alcohol purchased. Then on step 2 line 1 it says to enter the total taxable receipts (including alcohol sales). Then when I enter the deductions and go on to step 3 it tells me I am wrong, but if I don't add in the alcohol sales the math works fine. What am I doing wrong?
JA: The Accountant will know how to help. Is there anything else the Accountant should be aware of?
Customer: It is a bar/restaurant that I am doing this for.
Submitted: 1 year ago.
Category: Tax
Expert:  Dr. Fiona Chen replied 1 year ago.

Dear ST-1 Form,

Line one is the total and line two is the deduction. Are you deducing not only the gross receipts but also the alcohol purchased, so that your deduction is more than the gross receipt?

Regards,

Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP

Customer: replied 1 year ago.
In Illinois we are not supposed to tax on alcohol so the deduction amount is only for the food.
Expert:  Dr. Fiona Chen replied 1 year ago.

Dear ST-1,

So, to help me think, how much is your line one and how much is line two?

I am from Illinois and in Illinois, too.

Regards,

Fiona

Customer: replied 1 year ago.
Line 1 is $29,270.00(total amount of sales on food and alcohol) and line 2 is $615(taxes on food)
Expert:  Dr. Fiona Chen replied 1 year ago.

Dear ST-1,

If you are not required to tax on alcohol, should not that part be deducted in line 2? Line two is all the sales (proceeds) that are not subject to sales tax including sales tax collected. So, I guess the computer is trying to at least see your amount in Part A.

Regards,

Fiona

Customer: replied 1 year ago.
even though line 1 is tell me to include alcohol I should just put the food down because that is what is taxed.
Expert:  Dr. Fiona Chen replied 1 year ago.

Dear ST-1,

Line 1 is the total receipts the business had for the whole reporting period.

Line 2 is everything that is every receipts which are not subject to sales tax including alcohol purchased and sales tax collected or any other items not taxable.

Line 3 is the remaining receipts - the food sale should automatically represented and included here. The food sales should have been included in line 1 but not line 2.

Please note and refer to page*****1 form. Service income is non taxable. You can use this table to see what else you get to exclude. If in the total receipts, they have any service income. Service income can be deducted on line two, as well. So, it is suggested we use the table on page two of the ST-1 form to make sure we deduct out everything we don't have to include in the taxable receipts.

Regards,

Fiona