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Hello, I'm creating this specific post because I asked this question part of some other threads, but it looks like I can't have an understandable answer. This should be very easy for a TurboTax expert.
I think this is a very basic question that thousands of eBay resellers will want to ask to TurboTax, considering that almost everyone on eBay with a gross income more than $600 is receiving a 1099-K.
Here is the very simple description.
I'm an eBay reseller, I buy new stuff and resell it on eBay. I'm now trying to complete my 2022 tax return including my eBay income, for which I received a 1099-K.
I'm using TurboTax Self-Employed (online). I upgraded from DeLuxe when TurboTax told me that the Self-Employed version will help me managing the expenses very easily.
So far, after spending a few hours on TurboTax, after reading several posts, I'm still unable to understand where I can add the cost of goods.
In my business I buy stuff (new) and I sell that stuff. Form 1099-K just received from eBay only includes the GROSS income. I need to be able to also enter the cost of goods (how much I paid for those items that I sold) so I can pay my taxes only on the profit portion (profit=gross-expenses) not on all the gross amount reported in the 1099-K.
Here is what I tried to do:
- I first add the new self employed income
- Then I'm prompted the following:
Advertising
Handmade goods sales
You'll need to sign in or create an account to connect with an expert.
I would report "Costs to purchase or fix up the items sold" within the Inventory expense code. See this list of expenses available in Self-employed.
Click to the left of the Inventory code to add the expense to your self-employment activity.
In TurboTax Online Self-employed,
At a minimum, you should be entering beginning inventory, ending inventory and cost of purchases.
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