If you are reporting your artistic income through a self-employment activity on an IRS Schedule C Profit or Loss From Business, the cost of inventory and cost of goods sold are recorded within the self-employment activity.
Starting inventory may be $0. However, depending upon the nature of your art, the cost of the paper, framing supplies, paint, etc. may be considered part of your beginning inventory.
In TurboTax Online Premium, to report expenses under Self-employment income and expenses, follow these directions.
- Down the left side of the screen, click Federal.
- Down the left side of the screen, click Wages & Income.
- Scroll down to Self-employment click on the dropdown menu.
- Click Start/Revisit to the right of Self-employment income and expenses.
- At the screen Your 2023 self-employed work summary, click Edit to the right of the self-employment activity.
- Select Edit to the right of Inventory to report the cost of inventory and cost of goods sold.
You may amend before April 15. However, you should wait to amend until your tax return has been transmitted, accepted by the IRS and a refund issued or balance due recorded.
If you used TurboTax Online, log in to your account and select Amend a return that was filed and accepted.
If you used the CD/download product, sign back into your return and select Amend a filed return.
See also this TurboTax Help.
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