Where is cost of goods sold in TurboTax Self-Employed?

[CherylW · Accepted solution]

Cost of Goods Sold goes in Inventory/Cost of Goods Sold>Click Yes, I have inventory to report. 

Answer the question about how you value your inventory, then enter the inventory at the beginning and end of the year. 

Enter on the next screen the costs that you had for the year in purchasing or making your inventory. 

Cost of goods sold is figured automatically and put on the second page of your Schedule C.  It is equal to  

Purchases for the year + beginning inventory – ending inventory. 

[mike-wesner]

you still didn't tell me where "inventory / cost of goods sold" actually is! I can not find it anywhere!

[CherylW]

To figure Cost of Goods Sold in Self-Employed,
1.Go to Inventory/Cost of Goods Sold and click Start or Update.
2.Say Yes, I have inventory to report.
3.Answer the question about how you value your inventory.
4.Enter the inventory at the beginning and end of the year.
5.Enter on the next screen the costs that you had for the year in purchasing or making your inventory.  
Cost of goods sold is figured automatically and put on the second page of your Schedule C.  It is equal to   
Purchases for the year + beginning inventory – ending inventory.  
That number goes to page 1 of your Schedule C, on line 4.  That gets subtracted from line 1, gross receipts, to get your gross profit, which is line 5 of your Schedule C.

[tigermom8]

The TurboTax system isn't calculating my 'gross profit' correctly, since all it's asking for is the cost/wholesale value of what I bought during the year versus what I had left at the end of the year, but not asking for what the 'market value' or retail value that I sold it for is. How can I correct this or make it match up with my numbers??

[harley1]

Also cannot find "Inventory/Cost of goods sold" - nor can I find the "Business" tab also recommended in another answer. It does say I'm on TurboTax "Self-Employed" - Maybe I need to upgrade to an even more powerful and expensive version of TurboTax to see these items???

[CherylW]

No, no you're using last year's instructions.  I'll get you this year's.

[brittasulliv]

Looking for this year's instructions to find cost of goods sold/inventory. It does not prompt you and is not readily on your screen this year. Please supply this year's instructions!

[smathew424]

Turbo tax is not asking the right questions to calculate the gross profit correctly. It asks for 3 items: (i) Beginning inventory (ii) Ending inventory (iii) Cost of Goods sold

There should be a place to enter my total receipts! But there is none.

[tigermom8]

Hope you guys figured it out - I had to put my gross receipts in income, right after my 1099-MISC, as extra income, & listed it where it asked for other income, such as by cash or checks. Then my total figures at the end came out right.

[CherylW]

1.       Click Federal on the left-hand side menu.

2.       Click Income across the top.

3.       Scroll down to Self-Employment and click Show more.

4.       Click Start or Revisit by Income and Expenses.

Once you get into your input screens, you'll find the Inventory section.

[shalls7]

TurboTax CherylW If I need to enter costs of clothing at retail for a 1099K from paypal for resale of my clothing items, do I still put the total cost in inventory?  It is gonna end up showing a huge loss and I don't know where to enter the cost.  Thank you.

[CherylW]

Cost of goods sold (cogs) is what you purchased for resale during the year.  Don't calculate cogs by taking the resale price.  Cogs is your acquisition cost.

If you sold 10 widgets at 1.00 apiece, but bought 100 at .50 apiece, then
your beginning inventory would be 50.00,
your ending inventory would be 45.00,
your cogs would be 5.00 (10 widgets sold * .50 apiece bought).

[shalls7]

Thank you for answering but I don't think this scenario applies to my tax situation. I paid retail price for items and then sold them used at a lower price. If I use your equation above, then the IRS will owe me money on my purchases since there was no profit and it shows a $4,500 loss.

[CherylW]

Were they really worth the retail price when you sold them?  It sounds like you need to put them in beginning inventory as a number lower than retail price, since they're no longer new.