Please see this article for more information on how to report supplies vs. inventory in TurboTax Home & Business and other versions. An excerpt follows:
- With your return open, select the Business tab and proceed to the Let's gather your business info screen.
- If you haven't entered any business info yet, select Start in the first section, Business Income and Expenses and provide the requested info.
- Otherwise, select the Update button and then Edit on the following screen.
- On the Your Business screen, select Start/Update next to either Inventory/Cost of Goods Sold or Other Common Business Expenses depending on how you chose to report your inventory costs.
- If you don't have inventory but want to report materials and supplies as COGS, select Inventory and then enter 0 for both beginning and ending inventory values.
- If you chose "Other Common Business Expenses," select Supplies on the next screen.
You can record any other associated costs under the expense line item that best identifies the cost.
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