Business & farm

The following steps will take you to the Expenses section of TurboTax, which is where you will enter the Cost of Goods Sold (COGS):

1. Select "Federal Taxes" at the top of the screen
2. Under "Income & Expenses", select SELF-EMPLOYMENT INCOME/EXPENSES (click on Start)
3. Work through an screens about the business information, name, etc.

If you have inventory  :

1. When you get to the screen that asks "What kind of expenses did you have for <your business>?", choose the drop-down for "Less common expenses" and select "Inventory"
2. Click "Continue"
3. Select "Yes, I have inventory to report"
4. Select "Yes" to using the Cost Method to value inventory (recommended), or "No" if you use a different methed
5. Enter the value (at cost) of your inventory at the end of the year; click "Continue"
6. Enter the Cost of Purchases and any other expenses or inventory withdrawn for personal use

The above steps will include the cost of the items in COGS on your return.

If you do not have inventory:

1. When you get to the screen that asks "What kind of expenses did you have for <your business>?", choose "Supplies"
2. Click "Continue"