Have a Tax Question? Ask a Tax Expert
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?
Fiona Chen, MPA, Ph.D., CPA, ABV, CFF, CITP
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.
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.
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.