MindyB
Employee Tax Expert

Business & farm

The return seems in order, based on the information you input, but it's not correct.  Your beginning inventory must match last year's ending inventory.  The IRS expects your 2025 starting inventory to be $0. You should file an amended 2024 tax return (1040-X) to correct the error.

 

Don't forget to also include the expenses incurred throughout the year (Beginning Inventory  + Purchases - Ending Inventory = COGS)