I have a tee shirt printing business, in what section would i deduct clothing supplies and printing supplies

[PaulaM · Accepted solution]

These would be deducted in the expense section of your schedule C business. 

If you keep inventory for the clothing, you will need the beginning/ending inventory amounts, plus your clothing purchases to compute cost of goods sold. If you don't keep an inventory, then deduct under the supplies category.

Add another row to enter the printing supplies. See examples below.

To navigate back to your schedule C business: 

• Sign into your return and select 'take me to my return' button
• Type 'schedule c' in the search box, then select the 'jump to' link.

[officialdtgpro]

Great question! If you have a t-shirt printing business, clothing supplies (like blank t-shirts, hoodies, etc.) and printing supplies (like DTF film, ink, adhesive powder, etc.) are generally considered Cost of Goods Sold (COGS) or business expenses, depending on how your accounting is set up.

If you're using an accounting software like QuickBooks or Xero, you can typically categorize them under:

• Cost of Goods Sold > Supplies or

• Expenses > Printing Supplies / Materials

The idea is to keep production-related items (like what you use to make the shirts) separate from things like marketing or office expenses.

For example, when using product of DTGpro the DTF Printers, all the consumables you use (film, powder, ink) would fall under production or printing supply costs—since they're directly tied to your product creation.

That said, it's always good to check with an accountant to make sure it aligns with your local tax laws and business structure.

[PatriciaV]

The materials and supplies you use to produce your merchandise can be reported under similar expense lines in TurboTax for self-employment (Schedule C).

Note that you aren't required to report inventory (Cost of Goods Sold) if your gross receipts were under $26 million over the last 3 years. Most small business owners prefer to expense materials and supplies as they are purchased to avoid the additional work required to account for inventory.