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I am an Avon representative. This was my first year. I made under $5k. How do I know where to put the income and expenses? Do I report inventory? How does this work?

 
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2 Replies
ColeenD3
Expert Alumni

I am an Avon representative. This was my first year. I made under $5k. How do I know where to put the income and expenses? Do I report inventory? How does this work?

You would include your income  and any expenses on Schedule C. If you kept and inventory on hand, then yes. But if you did not order until you had a customer purchase, then no.

 

If you received a 1099-misc, follow these steps:

 

You can enter a 1099-MISC on the 1099-MISC Summary screen.

  1. Open or continue your return.
  2. Search for 1099-misc.
  3. Select the option to go to the 1099-MISC section.
  4. Select Yes to Did you get a 1099-MISC?
    • If you need to enter another 1099-MISC, select Add Another 1099-MISC to enter a new one.
  5. Enter the information from your 1099-MISC.
    • If your form has an amount in more than one box, you’ll need to enter them as separate 1099-MISC forms. We’ll help you with that.

There are different types of 1099-MISC forms. Don’t worry: we’ll ask you questions to determine your type of 1099-MISC and automatically put your information in the correct section of your return.

Once you have entered at least one 1099-MISC, you can return to the 1099-MISC Summary screen any time to review, edit, delete, or add a new 1099-MISC form.

 

If you did not receive one, follow the steps in this LINK

 

 

Carl
Level 15

I am an Avon representative. This was my first year. I made under $5k. How do I know where to put the income and expenses? Do I report inventory? How does this work?

I see that you are using the online version of TurboTax Self-Employed. SO here's a warning.

DO NOT register or pay your TurboTax fees until **AFTER** you have completed your return. If you do, then you can **NOT** clear and start over. I fully expect you will need to clear your return and start over multiple times with this being your first time reporting self-employment income.  You'll find the option to clear and start over under TOOLS on the left side of your screen. If you've already registered or paid your TurboTax fees, than that option will flat out not be available.

It's also important that you work through the program the way it is designed and intended to be used. If you jump around in the program, I can guarantee you will get frustrated.

In my personal opinion, the online version of turbotax is not user friendly in any way, form or fashion for either a first time user of the program, or for someone such as yourself who is reporting SCH C business income for their first time. But if you have the patience and don't mind starting over multiple times, you'll be fine. It's not like you're gonna learn this stuff through osmosis. It takes time, patience and multiple restarts.

Now, if *you* personally are required to pay for product *before* you sell it, then you *do* carry an inventory. Otherwise, you do not.

 

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