Yes, a
direct-selling business like Paparazzi Accessories is reported on Schedule C, included in
TurboTax Self-Employed Online.
To enter
self-employment income in TurboTax, go to the Search box in the header. Type in "schedule c", click the topic in the list, then
click "GO". You will be prompted to upgrade, if necessary, to the
TurboTax version that is best for your tax situation.
Follow the prompts
to describe your business activity, then enter your income and expenses. You
may be asked for a Business Code: most direct sales representatives choose
business code 454390 (Other direct selling establishments) and use the Cash
Method.
If the merchandise you purchased is for resale, it is considered Inventory. If you just started your business this year, your beginning inventory is $0 and the ending inventory is the cost of the products that you still have (did not sell). "Tell Us the Cost of Your Goods" should be the amount you paid to purchase the items from the company. If you used any products for yourself, you will enter than information as well (these expenditures are NOT deductible expenses).
If the items you purchased were used for advertising (not resale), you would include the amount you didn't use yourself under Other Common Business Expenses | Advertising. If you had product that was consumed for demonstration purposes, that amount would be entered under Supplies.
Other business expenses are listed under the Business Expenses section of your business.
Be sure to keep good
records.
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