No, there is not necessarily a problem if you do not have an inventory. If you are a small business, you do not need to keep an inventory, instead, you can list your costs as supply expenses in the business income and expense section of TurboTax Home and Business desktop or TurboTax Premium Online. You will be able to enter your expenses, after you enter your income. You should however, be using some type of income and expense tracking method whether it be a spreadsheet or something like QuickBooks self-employed.
You will enter your 1099-K or other tax document you received from Amazon in this section as well. To enter your Amazon income and expenses select the following:
- Federal
- Income and Expenses
- Show More next to Self-Employment
- Start next to Self-Employment
- Yes, to you have any self-employment income or expenses
- Enter the type of self-employment work you do and you can select that you use your name for your business
- Click through a few more screens and you will get to a screen that says "Your XX info"
- Click Looks good
- Then you will come to a screen that says Let's enter the income for your business. It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks. Here is where you will enter the money you receive.
- If you do not select one, it will not let you enter your income
- Enter your self-employment income on the next screen
- Continue and on the next screen click add expenses
- Select the category you want have expenses for such as supplies and shipping if you have shipping costs and fees.
- Go through each of the expenses and see which ones apply to you.
* Please note navigation may differ slightly depending on which version of TurboTax you are using*
Your Amazon income and supply expenses will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax. If you did not pay SE Taxes in 2024, and if you plan to do this again in 2025, it may be a good idea to make quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.
Taking Business Expense Deductions
If you are asking for live assistance, you can click on the Help button at the top of your screen and you can get live help or even have someone do the return for you.
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