This is the first year I have received any kind of 1099. I have located the area in turbo tax that I am to attach the 1099-necs but I have no idea where I should list the deductions for these jobs that I received the 1099-necs for.
Typically when doing my taxes, quickbooks calculates my cost of a job so I just enter my profit/net income into turbo tax.
Should I list the cost of the goods used for the job under "Business Income and Expenses / supplies" and create a category called "JOB materials and supplies"?
As long this category and description meet your management needs (to properly identify and track costs), that would be a perfectly acceptable approach, i.e. "list the cost of the goods used for the job under "Business Income and Expenses / supplies" and create a category called "JOB materials and supplies".
Remember to be consistent from year to year in how you categorize & report like-type expenses.
As long this category and description meet your management needs (to properly identify and track costs), that would be a perfectly acceptable approach, i.e. "list the cost of the goods used for the job under "Business Income and Expenses / supplies" and create a category called "JOB materials and supplies".
Remember to be consistent from year to year in how you categorize & report like-type expenses.
Thank you for the help and quick response.
Trying to figure out how to deal with 1099-nec in quickbooks should be a whole new headache 😕
I agree with ToddL99, and here is additional instruction on how to enter the COGS.
When you click on "Inventory/Cost of Goods Sold" in the business section of TurboTax, if you report that you have inventory, you will be asked to enter your beginning inventory and end of year inventory.
Your ending inventory will carry over as your beginning inventory for next year. The value of your ending inventory will be subtracted from the cost of your purchases in the current year and the beginning inventory will be added to your cost of purchases.
To figure Cost of Goods Sold in Self-Employed,
1.Go to Inventory/Cost of Goods Sold and click Start or Update.
2.Say Yes, I have inventory to report.
3.Answer the question about how you value your inventory.
4.Enter the inventory at the beginning and end of the year.
5.Enter on the next screen the costs that you had for the year in purchasing or making your inventory.
Cost of goods sold is figured automatically and put on the second page of your Schedule C. It is equal to
Purchases for the year + beginning inventory – ending inventory.
That number goes to page 1 of your Schedule C, on line 4. That gets subtracted from line 1, gross receipts, to get your gross profit, which is line 5 of your Schedule C.
Thanks Ray for that additional information. I don't currently enter inventory as I don't typically keep "stock" I order items a need be basis per job.
If you do not have inventory, and use all of your purchases for the jobs you complete during the year, then you would deduct the total amount paid for materials and supplies.