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I am an artist. I have sold some custom pieces and I have taught private art lessons this year. First question Do I fill out COGS on the Schedule C form?

Forum|Forum|2 years ago
April 9, 2024
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I have tax a ID number, most of my costs are hours spent planning and teaching. Is there a way to assign my hours a dollar amount to claim on the Schedule C?

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Best answer by VolvoGirl

Sorry no. You can't expense your own labor or time.

You don't enter your pay or withdrawals on schedule C or into your tax return at all. And you don’t include it as income anywhere else. (And if you paid yourself and deducted it as an expense then you would have to include it as income on the same tax return so it would be a wash.)

See Schedule C instructions page C-10 Line 26
Do not include salaries and wages deducted elsewhere on your return or
amounts paid to yourself.
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf

M

MinhT1

COGS for you consists of raw materials and supplies used for your art pieces.

No, you don't count your own time in COGS or in expenses. In fact, the net income of your business is compensation for your time.

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VolvoGirlAnswer

Sorry no. You can't expense your own labor or time.

You don't enter your pay or withdrawals on schedule C or into your tax return at all. And you don’t include it as income anywhere else. (And if you paid yourself and deducted it as an expense then you would have to include it as income on the same tax return so it would be a wash.)

See Schedule C instructions page C-10 Line 26
Do not include salaries and wages deducted elsewhere on your return or
amounts paid to yourself.
https://www.irs.gov/pub/irs-pdf/i1040sc.pdf