Travel Agency on board credit where to list on schedule C

[Diane1]

The question I have is where does travel agency put the on board credits he gives to his customers? Is it on line 2 (Schedule C) Return and Allowances or is it just another line item under other expenses.

[erchess]

I have never dealt with this issue but I think it would go in returns and allowances. Off hand I cannot think of any reason why where you list these would affect the rest of the return. But at a bare minimum you should consult the pub on self employment income and the instructions for Schedule c when the new ones for 2012 come out. In the alternative you could ask a question of your Prof. Org and both bill your client extra to cover the cost and deduct the cost as a business expense on your own return.