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jungle555
March 10, 2024
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My Accountant didn't put COGS on tax return 2022. Im worried she did it wrong

  • March 10, 2024
  • 1 reply
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My Accountant didn't put COGS on my tax return for 2022

It seems like she combined the COGS and Supplies on the Schedule C "Expenses" Section. I Sell house plants and they are in inventory so was thinking you need to have the COGS section to be filled up on tax return? 

 

I did my tax on 2020 and 2021 on my own and I followed the instructions and did the COSG section. Now Im worried that my tax 2022 will be audited. Or Im going to be ok? 

Do any other Eccomers who sell online fill up their COGS on tax returns? or they added to Expenses? 

 

Thank you 

Best answer by ChristieAnn 11

Hello there, jungle555.

 

I'll provide insights on how transactions work as well as regarding COGS in QuickBooks Self-Employed. I'll also ensure your entries are tracked efficiently to manage your tax returns smoothly.

 

QBSE does not include an inventory tracking option. That is why your accountant is unable to track home plants on your tax return as a Cost of Goods Sold item.

 

For now, house plants are categorized as Supplies. You use this category for the items you buy and sell or to make the goods you sell. Then. the mentioned entries are under Expenses when tracking data for your tax return. You may refer to this article to see guidelines on how to categorize transactions so they match a line on your Schedule C: Schedule C and expense categories in QuickBooks Solopreneur and QuickBooks Self-Employed.

 

I still recommend consulting your accountant as they provide further details on why COGS isn't included on your tax return for 2022. They're also the best person to handle your tax details and ensure your data is in shipshape.

 

In case you need guidelines of how QBSE helps you record your self-employed income and expenses, track mileage, and prepare your Schedule C tax form, you can read this article: Overview of QuickBooks Self-Employed.

 

Let me know in the comments below if you have other concerns about categorizing transactions and any related matter about tax return in QBSE. I'll be around to help, jungle555. Have a good day.

1 reply

C
ChristieAnn 11Answer
March 10, 2024

Hello there, jungle555.

 

I'll provide insights on how transactions work as well as regarding COGS in QuickBooks Self-Employed. I'll also ensure your entries are tracked efficiently to manage your tax returns smoothly.

 

QBSE does not include an inventory tracking option. That is why your accountant is unable to track home plants on your tax return as a Cost of Goods Sold item.

 

For now, house plants are categorized as Supplies. You use this category for the items you buy and sell or to make the goods you sell. Then. the mentioned entries are under Expenses when tracking data for your tax return. You may refer to this article to see guidelines on how to categorize transactions so they match a line on your Schedule C: Schedule C and expense categories in QuickBooks Solopreneur and QuickBooks Self-Employed.

 

I still recommend consulting your accountant as they provide further details on why COGS isn't included on your tax return for 2022. They're also the best person to handle your tax details and ensure your data is in shipshape.

 

In case you need guidelines of how QBSE helps you record your self-employed income and expenses, track mileage, and prepare your Schedule C tax form, you can read this article: Overview of QuickBooks Self-Employed.

 

Let me know in the comments below if you have other concerns about categorizing transactions and any related matter about tax return in QBSE. I'll be around to help, jungle555. Have a good day.

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