where do I enter the cost of goods sold?

thurifer
thurifer Member Posts: 1 Newcomer
in General

where do I enter the cost of goods sold? It is nowhere on the income tab.

Best Answers

  • kiarab
    kiarab FreeTaxUSA Agent Posts: 122
    edited April 2024 Answer ✓

    Hello,

    Cost of Goods is usually reported on a Schedule C. You can find it by going to Income → Business Income (Schedule C). There you can enter information about your business/self-employment, such as income, business expenses, and costs of goods sold (inventory). The software is pretty good about guiding you through the process.

  • DannoTheManno
    DannoTheManno Member Posts: 2 Level 2
    edited February 6 Answer ✓

    Hold on...on the business setup questionnaire titled "Tell us about your business" where you select a business code, there is a check box below asking "Does your business have inventory or cost of goods sold?". Make sure you check ✅ YES. Then select the accounting method.

    Then Inventory and Cost of Goods Sold will appear on the Your Business screen where you edit.

Answers

  • pljwriter
    pljwriter Member Posts: 1 Newcomer
    https://community.freetaxusa.com/discussion/comment/1844#Comment_1844

    I'm having the same problem and there isn't a way to access the Part II of Schedule C to enter cost of goods sold and inventory information.

  • DannoTheManno
    DannoTheManno Member Posts: 2 Level 2

    I am also not finding where COGS can be entered for schedule C section III. Is this a glitch?

  • nih
    nih Member Posts: 1 Newcomer

    Did anyone find out if this was a glitch or not? I looked everywhere and I can't find Section III of Schedule C anywhere on the wizard. What am I missing here?

  • CoryF
    CoryF FreeTaxUSA Agent Posts: 189

    Thank you for this concern.

    Imbedded in the Information screen within the Schedule C set up is this question:

    Does your business have inventory or cost of goods sold?

    You can get to this question after initially setting up the Schedule C by following this menu path

    1. Go to Income > Business income (Schedule C)
    2. Click Edit for the business you are reporting
    3. Click Edit next to Basic Business Information.
    4. Click Save and Continue 1 screen to this screen "Tell us about your business"

    Answer yes to Inventory or cost of goods sold question and a new option will pull up in the Schedule C Your Business Screen. It will be labeled Inventory and Cost of Goods Sold located in the Income section. You will report the starting and ending inventory with current year purchases.

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