Enter this as "Cost of Goods" in the section after you enter your income on the Business Statement - T2125.
In TurboTax Self-Employed, you do not actually enter the Cost of Goods Sold into the program. Rather, you enter your beginning inventory, purchases, and ending inventory and the program will calculate the COGS for you.
Here are the few steps you can follow, to figure out the 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.
The 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.
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