Question

Inventory on Schedule C

Forum|Forum|6 years ago
March 26, 2020
1 reply
0 views

I resell merchandise. In 2018, I filed schedule C, cash accounting method but did not enter EOY inventory. TurboTax stated that reporting inventory is not necessary if you have less than a million in sales or receipts, which I do not have. Was I correct in omitting EOY inventory or do I need to amend the return to include the inventory? For 2019, do I not exclude the EOY and BOY as well? Thank you

Not A Product Question

JohnB5677

I recommend that you do maintain the inventory information. If you posted Cost of Purchases in the Inventory section it will have inflated your profit.

You can gather the information and update it in 2019 and describe what happened, but it may be prudent to file the amended return.

If you've filed your return and need to add additional information, then you will have to prepare an amended return in TurboTax.

If you used TurboTax Online, simply log in to your account and select “Amend a return that was filed and accepted.”

If you used our CD/download product, sign back into your return and select “Amend a filed return.” You must file a separate Form 1040X for each tax return you are amending.

Amend ONLINE OR Amend CD/Download Amend 2016 - 2019

You will have to mail the amended return. The IRS limits the system to only one Social Security number or Tax ID to be E-Filed. This is to guard against fraudulent tax returns.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"