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New Member
posted Oct 30, 2019 4:52:48 PM

Where do I make deductions for subcontracted work that I paid for? Which tab is it in? How Do I get to the inventory section?

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1 Best answer
Moderator
Oct 30, 2019 4:52:49 PM

“Inventory” is part of the Self-Employment interview (Income> Self-Employment). It will appear after the “Identification of your business” and “Identification of your partners (if applicable)” if you are creating a new business.

 

If you have already created a business in TurboTax Online Self-Employed, you can go straight there by choosing “Self-Employment Summary” from under “Self-Employment” in the “Income” tab. Click “Edit” next to your business and then click on “Income and inventory”. Click on “Skip Income” to go to the “Inventory” section.

 

There you can put your amounts paid for sub-contractors in the space for “Did you hire any Subcontracts?”. Even though the description only mentions goods, it applies to services as well. If you use the “Salaries, Wages and Benefits” spot under Business Expenses, the CRA will expect you to have run a proper payroll (EI, CPP, issued slips, etc…).


7 Replies
Moderator
Oct 30, 2019 4:52:49 PM

“Inventory” is part of the Self-Employment interview (Income> Self-Employment). It will appear after the “Identification of your business” and “Identification of your partners (if applicable)” if you are creating a new business.

 

If you have already created a business in TurboTax Online Self-Employed, you can go straight there by choosing “Self-Employment Summary” from under “Self-Employment” in the “Income” tab. Click “Edit” next to your business and then click on “Income and inventory”. Click on “Skip Income” to go to the “Inventory” section.

 

There you can put your amounts paid for sub-contractors in the space for “Did you hire any Subcontracts?”. Even though the description only mentions goods, it applies to services as well. If you use the “Salaries, Wages and Benefits” spot under Business Expenses, the CRA will expect you to have run a proper payroll (EI, CPP, issued slips, etc…).


New Member
Sep 8, 2022 9:31:53 AM

hi! i needed help, I still cant find the page after clicking the "income and inventory" then "skip income", it directs me always to the vehicle expenses, not the same thing with my 2020 file, the next should be the inventory

Level 15
Sep 12, 2022 7:17:14 AM

 To input your Inventory (Costs of Goods) sign into TurboTax Online and:

> Choose your return for the tax year

> On the left navigation pane, you will click "Income", "Self Employment", then "Business or Professional Activities"

> For you to be able to input Cost of Goods, you must have indicated to TurboTax that your business type is called Business (Goods Sold), which is a type of business that you choose when you entered a new business in this form.

> Once you've confirmed the business is this type, you will hit "edit" beside the business, click "Income and Inventory", and you will click Continue twice.

> Here is the inventory section. The Canada Revenue Agency requires that you do an inventory evaluation in the beginning of your fiscal period and at the end and the difference between the two is expensed and deducted.

Make sure to click Continue so that your information is saved.

 

Thank you for choosing TurboTax

New Member
Apr 28, 2023 1:35:03 PM

I still have no access to inventory.  I need to enter sun contractor payouts

Moderator
Apr 29, 2023 5:34:59 PM

@sgforsyth Did you select "Business(Goods sold)" when entered your business? If you selected "Professional", then you will not see the Inventory section.

New Member
Apr 29, 2024 11:49:25 AM

Hi there,

 

I have this same problem and selected 'Professional'. How can I claim subcontractor fees under the 'Professional' selection? My business does not fall under 'Business (Goods)'

Moderator
Apr 29, 2024 12:16:19 PM

@mclee86 For tax purposes, Professional includes the following:

  • Architect 
  • Chartered or Certified Accountant 
  • Dentist 
  • Engineer 
  • Lawyer or Notary 
  • Management Consultant 
  • Physician, surgeon, or specialist 
  • Psychologist 
  • Veterinarian 
  • Other accounting or bookkeeping services 
  • Other health practitioner 
  • Other scientific or technical services 
  • Other social service practitioner 

CRA considers other self-employment income (as long as it's not from farming or fishing) to be business income rather than professional income.