Intuit TurboTax Home and Business Software

[HelpfulKC]

For Expense for Embroidery/T-Shirt Business ?'s using Home and Business Software.

1. COGS section-  What is the difference/examples of the:

                    1.  Cost of Purchases

                     2.  Materials and Supplies

                     3. Other Cost

2. Ordered designs and Transfers for shirts off of Ebay from different sellers. Is this a Labor Cost?

[BeckyLeeH]

Your Embroidery/T-shirt Business Income and Expenses are reported on Schedule C of your Tax Return.

Here is an explanation of how to report your expenses for Cost of Purchases, Materials and Supplies, Other Costs and Labor Costs.

https://turbotax.intuit.com/tax-tips/self-employment-taxes/reporting-self-employment-business-income...

In general:

 Cost of Purchases are products you bought for resale, such as T-shirts.

Materials and Supplies include threads and designs such as designs and Transfers for shirts, for example your purchases from eBay.

Other Costs include any costs you paid that were directly included in the products you sold, such as labels and packaging.