Cost of Goods Sold may be reported under a self-employment activity. Under your self-employment activity, at the screen Here's your info, select Add expenses for this work. Select Inventory.
To report Self-employment income for an IRS form 1099-K, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Click Show more to the right of Other Common Income.
- Under Your income and expenses, click the Edit/Add button to the right of Form 1099-K.
- At the screen Did you get a 1099-K? click Yes.
- At the screen How would you like to enter your 1099-K? click Type it in myself. Click Continue.
- At the screen Choose which type of income your 1099-K is for, select the button for Self-employment income. Click Continue.
- At the screen Let’s get the info from your 1099-K, enter the information. Click Continue.
- At the screen Your Self-employment 1099-K income, you enter further information for the Self-employment income. Click Continue.
- At the screen Your 1099-K summary, notice that the income relates to Self-employment income. Click Done.
The entry will be reported:
- on Schedule C of the Federal 1040 tax return, and
- on Schedule SE of the Federal 1040 tax return, and
- on line 3 of Schedule 1 of the Federal 1040 tax return, and
- on line 8 of the Federal 1040 tax return.
Additional information about your self-employment income and Schedule C will need to be entered.
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