AnnetteB6
Expert Alumni

Get your taxes done using TurboTax

It sounds like you may carry an inventory of calendars throughout the year, but you do not directly have an inventory of the photo prints that you sell online because they are produced elsewhere.  

 

If you did carry an inventory of calendars at any time during 2022, then you can complete the section about inventory and cost of goods sold.  You will be asked about starting and ending inventory, which can be zero for both amounts.  There will also be a place to report the cost of inventory items that you purchased or materials that you used to produce your inventory.  Those amounts will determine your cost of goods sold.  Be sure that you do not duplicate the reporting of the cost of supplies to produce your inventory in the general expenses section under 'supplies'.  

 

As long as your income does not grow exponentially, simply reporting the cost of your supplies and materials used to create your products in the general expenses section of Schedule C is acceptable instead of tracking inventory and entering the details in that section.  

 

Take a look at the following TurboTax help article for more information:

 

Do I need to report inventory?

 

@ZachV 

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