I agree with ToddL99, and here is additional instruction on how to enter the COGS.
When you click on "Inventory/Cost of Goods Sold" in the business section of TurboTax, if you report that you have inventory, you will be asked to enter your beginning inventory and end of year inventory.
Your ending inventory will carry over as your beginning inventory for next year. The value of your ending inventory will be subtracted from the cost of your purchases in the current year and the beginning inventory will be added to your cost of purchases.
To figure Cost of Goods Sold in Self-Employed,
1.Go to Inventory/Cost of Goods Sold and click Start or Update.
2.Say Yes, I have inventory to report.
3.Answer the question about how you value your inventory.
4.Enter the inventory at the beginning and end of the year.
5.Enter on the next screen the costs that you had for the year in purchasing or making your inventory.
Cost of goods sold is figured automatically and put on the second page of your Schedule C. It is equal to
Purchases for the year + beginning inventory – ending inventory.
That number goes to page 1 of your Schedule C, on line 4. That gets subtracted from line 1, gross receipts, to get your gross profit, which is line 5 of your Schedule C.
