So, this is the first time I've had to file. I provide services through Rover, dog walking and drop in visits. My taxes keep being rejected because it's requiring a cost of goods sold inventory whatever. I'm really frustrated because I'm not SELLING ANY GOODS. I have no inventory.
I'm providing a service.
The guide Rover provided states to use cash method for accounting but this next step of inventory is required. Selecting other is stating there's a need to submit an inventory sheet.
Obviously my taxes are late because I've been struggling to figure this out and don't have the money to pay somebody to help me. I'm ready to scream.
WHAT DO I SELECT HERE? What do I do?
I've never liked before. I'm on disability and do this to try to supplement it some. I don't earn much money period. But for the life of me I can't figure out what to out for a service and there's no goods,no inventory, nothing being sold.
Please help!
Actually you can just enter it as Other self employment income or as Cash or General income. You don't need to get a 1099MISC, 1099NEC or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C. You should be entering the income from your own records.
Sorry I don't know what to tell you about inventory. Just try to skip or continue through that part.
No you don't have to do inventory. Just skip that part. Just enter your income and expenses.
To report your self employment income you will fill out schedule C in your personal 1040 tax return and pay SE self employment Tax. You can enter Self Employment Income into Online Deluxe but if you have any expenses you will have to upgrade to Premium version. Or any of the Desktop programs. But you will get the most help in the Home & Business version.
How to enter income from Self Employment
https://ttlc.intuit.com/community/self-employed/help/how-do-i-report-income-from-self-employment/00/26653
Where to enter business expenses
https://ttlc.intuit.com/community/entering-importing/help/where-do-i-enter-my-self-employment-business-expenses-like-home-office-vehicle-mileage-and-supplies/01/27109
Self Employment tax (Scheduled SE) is automatically generated if a person has $400 or more of net profit from self-employment. You pay 15.3% SE tax on 92.35% of your Net Profit greater than $400. The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire. You do get to take off the 50% ER portion of the SE tax as an adjustment on 1040. The SE tax is already included in your tax due or reduced your refund. The SE tax is in addition to your regular income tax on the net profit.
Here is some IRS reading material……
IRS information on Self Employment
https://www.irs.gov/businesses/small-businesses-self-employed/self-employed-individuals-tax-center
IRS Guide to Business Expense Resources
https://www.irs.gov/forms-pubs/guide-to-business-expense-resources
Turbo Tax Self Employed Tax Hub
https://turbotax.intuit.com/personal-taxes/self-employment-taxes
Turbo Tax Self Employment info
https://turbotax.intuit.com/tax-tips/self-employment-taxes/beginners-tax-guide-for-the-self-employed/L2HLojrj5
It doesn't let me not put anything.
I'm using tax act because it's actually free. I can't afford turbo tax (plus turbotax is showing a greater amount due) but this seemed like the right place to ask.
It doesn't let me not select anything though.
Actually you can just enter it as Other self employment income or as Cash or General income. You don't need to get a 1099MISC, 1099NEC or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to schedule C. You should be entering the income from your own records.
Sorry I don't know what to tell you about inventory. Just try to skip or continue through that part.