Turbotax Expenses Bug

Forum|Forum|5 years ago
April 14, 2021
2 replies
18 views

Hi I am trying to edit my work related expenses, specifically my inventory expenses. Originally I had inventory expenses but was advised to put the inventory expenses under my supply expenses. When I try to delete the inventory expenses I keep receiving an error. I can not continue with filing my taxes because the system still believes that I have inventory expenses to report when I do not.

TurboTax Self Employed Online

gloriah5200

Level 10

Did you have end-of-year inventory costs on your last year's return? If so, then the software is automatically carrying the end of the year amount into the inventory section to continue your return the same way as you prepared it last year.

In order to "break the cycle", you may need to go in and delete the beginning of the year inventory expenses carried from your 2019 return or replace them with a 0.

If you do carry an inventory, then you are required to report it as an inventory.

If each year, you only purchase the items you sell in that year, then you can still use an inventory but enter a 0 ending inventory and a 0 beginning inventory.

I am not sure of who told you to include your inventory as supply expenses nor the reason why, but if you have a sales business that generally would carry an inventory, IRS may question your return if you do not show one on your business return.