Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Jun 5, 2019 2:49:40 PM

I'm claiming my small business this year since I was over 200 PayPal trans. Cost of goods. Include shipping fees in the amount?

0 3 646
1 Best answer
New Member
Jun 5, 2019 2:49:42 PM

If it's shipping fees to receive your inventory, yes include it in your purchases along with sales tax and any cost to acquire your inventory. If it's shipping to your customer, of course, you won't include it in Cost of Goods Sold and enter it in shipping/postage in your common expense section.

3 Replies
New Member
Jun 5, 2019 2:49:42 PM

If it's shipping fees to receive your inventory, yes include it in your purchases along with sales tax and any cost to acquire your inventory. If it's shipping to your customer, of course, you won't include it in Cost of Goods Sold and enter it in shipping/postage in your common expense section.

Level 1
Mar 16, 2020 12:11:32 PM

What about in Turbotax deluxe? My "business" isn't complicated enough to require home/business.

Expert Alumni
Mar 16, 2020 8:07:30 PM

You can report self-employment with a simple Schedule C, but that will not allow you to report any expenses. 

Additionally, if you have self-employment income, the IRS requires you report the income as well as any business expenses. 

(if a taxpayer improperly claimed income without the expenses, they could get an Earned Income Credit that they are not entitled to)