If on your past returns, you used the Cost of Goods Sold (Inventory) account to record your business supply purchases, you should continue using that account. To enter your purchases/supplies/materials in your inventory account:
- Type Schedule C in the Search box.
- Select the Jump to link.
- If this is your first time working in this section: You’ll be asked some questions about your self-employment work and income and then have a chance to enter your expenses.
- If you have already entered some information about your self-employment work:
- Select Edit next to your business and confirm your general business info if asked.
- Select Add expenses for this work if inventory is not already on the list.
- Select Start next to Inventory. Purchases, materials, and supplies used in your finished products are included in your inventory.
- You will need the inventory account information from last year (ending inventory) in order to properly report your Inventory costs this year.
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If you are not reporting inventory/COGS but had material or supply expenses, enter them as Supplies under expenses.
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