What is the income under Self-employment income and expenses on Turbotax? Is it the gross income on line 7 of schedule C?

[_ross_f22]

There's no place on Turbotax Self-Employed version to enter Cost of Good Sold.

[ColeenD3]

Cost of Goods Sold is found in the expense section. Line 7 includes COGS.

It is called Inventory under "Less Common Expenses"

Inventory

Only enter the amounts paid for products held for sale, like:

• Costs of purchases
• Costs of materials
• Costs of direct labor
• Resale items
• Other inventory expenses

[_ross_f22]

I think the Inventory expense refers to unsold inventory. I am trying to see if I should exclude my cost from the income entered.

[ColeenD3]

Gross receipts, Line 1, is the money that you make. COGS starts with beginning inventory, adds purchases and other costs and subtracts ending inventory from that amount. The resultant figure is your cost.

Your cost is subtracted from your gross receipts to give you gross profit, Line 5. You may have income from sources not related to your business per se, such as an amount from a bank for opening an account. That is added to gross profit to give you Line 7, gross income.

Your expenses are deducted from that amount to give you net profit or loss.