I purchased and am using TurboTax self-employment 2019 tax return software. It hasn't been easy as I've had to google nearly every question because the help pop ups don't provide enough information. This one should be simple though, what proof of income is required when filing? Do I need a yearly or monthly financial summary for each? What proof do I need for deductions? When I figured the value of my inventory I used Goodwill's inventory prices since half of my inventory is from thrift shops but a lot of them were my personal clothing that I paid well over the Goodwill price. Some of the items I purchased years ago and do not have a receipt. Do I include the Goodwill inventory value price guide that was used? This is like the guide I used: https://www.goodwill.org/wp-content/uploads/2020/03/donation_valuation_guide.pdf Do I need a copy of what's pictured on my Poshmark closet to back up my claims? What about mileage? I estimated based on the distance it took in route to thrift shops or yard sales but I have no proof. What proof, if any, is required for mileage deduction?
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Sounds like you are right on track using Goodwill values to sell your used items online.
You don't have to submit that info with your tax return, but definitely save documentation for how you determined the amount of your Self-Employment Income (bank deposits, PayPal statements, etc.)
To claim Business Vehicle Expenses, you will enter your vehicle info in that section of of Self Employment Expenses.
You will need to keep track of mileage to/from thrift shops and yard sales to claim 'Business Miles'. You can use a notebook or calendar, or any method that works for you, to keep track of these miles.
Again, you don't need to submit your mileage records with your tax return, but save them with your tax documents.
Click this link for detailed info on Self Employment Expenses.
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