Sorry been away for a bit. hopefully I can clarify my statements as I may have given wrong numbers:
I did my taxes first without putting in the numbers for my retail sales business...
My AGI was around $110,000 and so Turbo tax had me owing $1,400 in Fed Tax.
I added the following information for my business:
Begin inventory = $35,000
Ending inventory = $51,000
Gross Sales (Income) = $5,000
Cost of goods sold = $3,000
I have minimal expenses this year for the business so I didn't take any deduction for it.
So as you mentioned, the Ending Inventory include $19,000 worth of products purchased in 2020
When I input the able inventory info, somehow it brought my AGI to $129,000 and now the Fed Tax I owe is around $6,200 which is an additional $4,800 in Fed Tax.
Should my AGI be $112,000?
Hopefully that will help to get an answer.
Thanks,
