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

[MichaelDC · Accepted solution]

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.

[bgoldnyxnet]

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

[KrisD15]

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)