topic Etsy sales and "The Business income of $0 needs to be adjusted" in Get your taxes done using TurboTax

Etsy sales and "The Business income of $0 needs to be adjusted"

KSG_KSG_XIX — Fri, 26 Feb 2021 21:33:32 GMT

I'm going nuts. The Home and Business edition asks for my profits.

(Business income/General income, since Etsy doesn't send out 1099-NEC forms, just 1099-K)

I put in my net profits.

I put in my expenses for supplies under "Other common expenses," as well as ordinary things like printer ink, etc.

"Do you want the QBI" of course I do (click)

The business income of $0 needs to be adjusted

It shows my net as my gross (which still shouldn't result in $0 income)

I go back to General Income, change my net income to the gross income

The Business income of $0 needs to be adjusted

I'm at my wit's end. I am not asking it to do a whole lot here; what am I doing wrong?

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

VolvoGirl — Fri, 26 Feb 2021 21:36:52 GMT

Where does it ask for Profit? You enter the total income you received 100%. Then enter the expenses and Turbo Tax calculates the Net Profit or Loss on schedule C.

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

KSG_KSG_XIX — Fri, 26 Feb 2021 22:16:55 GMT

Thank you for the prompt response.

I haven't encountered a simple "profit" option. Perhaps I am in the wrong section. Is there a way to just skip to Schedule C?

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

VolvoGirl — Fri, 26 Feb 2021 22:39:07 GMT

You can see the actual forms (and enter into them). But you should not enter directly on the forms, it will void the guarantee and you might not be able to efile. Sounds like you entered your income in the right spot under Business-General Income. Then go to Business Expenses- other Common expenses.

To see schedule C click Forms at the top and you can see all the forms. Give it a try.

What do you mean a simple profit option?

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

KSG_KSG_XIX — Fri, 26 Feb 2021 22:43:09 GMT

Oh, I was just asking if I had missed a line marked Total Profit somewhere. I've put everything into income, then general expenses, and it's just not working. I wish I could show you what I mean. But I will try searching for schedule C

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

KSG_KSG_XIX — Fri, 26 Feb 2021 22:44:45 GMT

In other words, I need to use the NEC form line, but I don't have an NEC form. There is some step I'm missing to get my information input correctly. :(

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

VolvoGirl — Fri, 26 Feb 2021 22:49:47 GMT

I have the Windows Home & Business version too. I put in 10,000 of General Income and 1,200 supplies and mine says Business income of 8,800 needs to be adjusted. That screen is just if you know you have an uncommon situation and know to make adjustments. If your screen says business income of $0 then that is the Net Profit on the Schedule C. Look at Sch C and see what's going on. Have you updated the program? Go up to Online-Check for Updates.

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

KSG_KSG_XIX — Fri, 26 Feb 2021 22:57:23 GMT

Maybe I do need to update it. Because the math just isn't working out for me like it is for you. Thanks I'll let you know how it turns out.

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

MarilynG1 — Sat, 27 Feb 2021 00:23:41 GMT

In the Step-by-Step mode, type 'schedule c' in the Search area (magnifying glass at the top right), then click on 'Jump to schedule c'.

EDIT your Business. Scroll to Business Income and choose START or UPDATE.

Click Start or Update under General Income on the next screen (screenshot).

On the next screen, you can add income from cash, checks, credit cards (screenshot).

Click this link for more info on Reporting Business Income and Expenses.

Re: Etsy sales and "The Business income of $0 needs to be adjusted"

KSG_KSG_XIX — Sat, 27 Feb 2021 00:57:06 GMT

Thank you. VolvoGirl got me on the right track, but you confirmed it. Searching for Schedule C first (for whatever reason) got it all to calculate correctly.