Poshmark, but without a 1099

[chellers1968]

I sold on Poshmark last year and made over $600, but 1099's were not issued last year on the smaller amounts. I am filing based on my sales report and what I my loss/gains were as well. Turbo Tax wants to know how much my inventory was worth, but I don't know since it wasn't a business so much before 2022. Would a guesstimate be okay if I use that going forward?  I know I have a loss overall when I figure in my losses and gains on some of my inventory, but my refund is showing much larger than I would have expected.

Thanks.

[AliciaP1]

You should be using a reasonable fair-market value for your inventory you sold.  Also, be sure if you made any purchases and still hold them in inventory you have entered the balance there correctly rather than just the expense of the purchases.

To enter your inventory balances in TurboTax you can follow these steps:

1. With your return open in TurboTax, search for Schedule C and then select the "jump to" link to go to the self-employed section.
   • If you're new to this section, we'll ask for info about your business first. Eventually, we'll ask if you had any business-related expenses; answer Yes
   • Otherwise, select Review next to your business and then the Add Expenses for this work button.
2. When you get to the First select the expenses you know you had screen, scroll down and select either Supplies or Inventory.
   • If you don't have inventory but want to report materials and supplies as COGS, select Inventory and then enter 0 for both beginning and ending inventory values.
3. Follow the onscreen instructions to completion.

[chellers1968]

I am using Turbo Tax Deluxe and entered it under Business Items.  I entered what I sold the item for along with what I purchased it for if it was a new item.  If it was a used item, I listed what the original price was if I could remember or I did a best guesstimate.  

As for my inventory, I don't know what it was worth on January 1, 2022, so again, I did a guesstimate based on the figures I see in Poshmark.

So, are you saying I should use my Poshmark Sales Report that I filled in and use that in the Schedule C form?

Thank you.

[AbrahamT]

Precisely

[chellers1968]

How do I access Schedule C in Turbo Tax Deluxe?  I can see it referenced, but I don't see how to access it.  Thanks.

[JulieS]

To start a Schedule C for self-employment  when you don't have a 1099-NEC:

1. Select Federal, then Wages & Income.
2. Scroll down to Self-Employment.
3. Click Start to the right of Self-employment income and expenses. 
4. Answer the first question, Yes, I did. 

This will start a Schedule C in your return and lead you through the necessary questions to report your income and expenses.