Small Business - Independent Contractor for MLM

[madmohr1095]

I am working on filing my taxes. There is a section that is asking me for my beginning and ending inventory. I just keep track of my income and expenses for my small business. I do not make enough money to get a 1099. What do I do if I don't know what the beginning and ending costs of my inventory are?

[bkaytaxes]

Hello @madmohr1095 !

Great question, this can be confusing when you are a small business owner.  The great news is that you are not required to track you inventory if your business earned less than $26 Million per year on average for the last 3 years. 

Here is an article for more information:  Inventory Reporting Requirements  

Wishing all the best and please reach out again if you have more questions!!

[madmohr1095]

Thank you so much! That is such a relief!! Should I just enter 0 for the beginning and ending inventory?

[Anonymous_]

Don't enter anything (leave the lines blank) if you do not maintain an inventory.

[It sounds as if you may have answered a question wrong in the program, for example, "Yes" as to whether you keep an inventory. If that's the case, go back and answer "No" to that question]

[bkaytaxes]

Great questions!  You can just leave it blank and not input date in that section.