2013 Federal 1040: Cost of Goods Sold
On a federal Schedule C, the cost of goods sold reduces the business’ gross receipts and sales. In determining the cost of goods sold, the cost of direct labor for workers that produce the inventory is included.
Certain customers, who filed a 2013 federal Schedule C that included cost of goods sold, may have filed an incorrect federal tax return.
TurboTax has fixed this issue.
How to tell if you may be impacted
You may be affected if ALL of the following are true:
- You filed a federal tax return prior to March 6, 2014 AND
- Your return includes a Schedule C (Profit or Loss from Business) AND
- On that Schedule C, the cost of labor (under costs of goods sold) was incorrectly entered twice: once on Schedule C, line 37 and also entered on Schedule C, line 26 (wages).
If you are affected, you may have underpaid your federal tax. You may need to amend your federal income tax return (and possibly your state tax return.)
Note: if the amounts on Schedule C, line 26 and line 37 are correct, you do not need to amend this return.
To amend your return:
- Follow these step-by-step instructions.
- After you make the changes to your tax return, you will need to mail a copy return.
- Your federal amended return to the Internal Revenue Service and
- Your state amended return to your state tax authority, if your state return is affected
- Your printed return(s) will include instructions on how and where to mail it.
If you need to contact us, please use the phone number in the email from TurboTax and tell the representative you’re calling about the 2013 Federal 1040: Cost of Goods Sold