Wednesday, March 24, 2010
Open Question: How to correct Schedule C Tax Forms (Costs of Goods Sold)?
So last year I filled out my taxes using Turbo Tax and I have a free lance photography business. I wasn't exactly sure about the costs of goods box so I mistakenly filled it out with the costs of all my goods (pretty much my assets). After doing research I found out that I don't need to fill out this section because I make under 1 million and I am a service. So in 2008 i declared Costs of goods sold to be 10k and ending inventory 14k (thinking it was my assets like camera equipment). So I had 4k more of gross profit. So my question is I want to fill it out correctly and not have anything in costs of goods sold like i'm supposed to. How do I recapture the 4k which was mistakenly claimed last year and what should I fill out on this year's tax form? Right now I have a15k of costs of goods sold for beginning of 2009, what should I put in the end of the year? Should I just zero it out like it is supposed to be so I don't get audited? If someone can provide guidance or point me in the right direction would be much appreciated. Regards, Eric
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