I own a vending machine and I have to pay local taxes every quarter. Usually like $1000 every quarter.
Do I report the gross minus the local taxes? or is there a slot for the deductions for local taxes?
or do I pay taxes on it twice?
Depends on what kind of "local taxes" you're talking about. If it's sales tax, it was never your money to begin with and you start with your gross income as your total receipts less the sales taxes. If it's a local income tax like they have in NYC, LA, or some areas of Ohio, then it'd be a deduction from your gross income.
Those "local taxes" are sales taxes and should not be included in your gross income for income tax purposes.
Your machines take in a total of $60,000 one year.
You back into the sales taxes and pay $4000 for the year to the state/local sales tax authorities.
The starting point on the income tax return should be $56,000 ($60,000 less $4,000). Your cost of goods sold and other expenses are then subtracted from this amount to determine your net income for income tax purposes.
You report it all, and the local taxes are an expense you deduct.