Business expenses with no income and no tax id

[sgreulach]

Hello,

I began consulting on my own in 2020, licensed through an organization to use their software, letterhead, etc.  I paid the company, Enable Solutions, $15,000 to be trained and licensed.  In addition, I accumulated $120 in print expenses and $385 for a Premium LinkedIn membership for my consulting business throughout the year.  I never charged nor received revenue throughout the year for this business.  Therefore, I never applied and created a tax ID for this business.  I will not be continuing with the business in 2021.  

What is the best way to account for these expenses in Turbo Tax?  This year I have purchased the Home & Business Turbo Tax.  

Thank you,

Shane

[RayW7]

Any year you have minimal or no income, you may be able to skip filing your tax return and the related paperwork. However, it's perfectly legal to file a tax return showing zero income, and this might be a good idea for a number of reasons.

Based on the IRS requirement, if your business makes less than $400, you usually do not have to file if it's your only income.  Please see the IRS interactive questionnaire Do I need To File A Tax Return to determine, with accuracy, if you have to file a return or not.

 While you may not have made any profits, if since you have expenses, you may want to file a Schedule C to claim them.  If you do not claim your expense in the year you pay them, you may not be able to deduct them in the future when you do have income. 

Please read the following article to guide your decision; Can I File An Income Tax Return If I Don't Have Any Income?  It will provide you with advice on filing if you have any expenses, such as the cost of your business license.