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hugom-skechers
New Member

Business income and expenses - income from sales or services that weren't reported on Forms

Hey All, First time doing my taxes by my self , my question here is if its okay to enter an amount even tho its a lost and didnt make any profit . Also do i put all in one group for the whole year or do i have to categorize, each and every item
1 Reply
MichaelDC
New Member

Business income and expenses - income from sales or services that weren't reported on Forms

Yes, you can still claim business related expense, even though you had no profit, which is common in the first couple years.You can also claim income without the need of a typical reporting form. You can add up all of your income from sales/services and enter it once.

As a Business, you are considered to be self-employed. You report both income (if any) and expenses on Schedule C/Business Income & Expenses. Most people get a Form 1099-MISC in the mail when they do contract or freelance work and make over $600.

Since you didn't receive a 1099-MISC, you can report other income simply by following the instructions below:

1. Sign into you TurboTax account.

2. Click Pick up where I left off (if not already open)

3. Click Federal Taxes tab

4. Click Wages & Income sub category.

5. Select I'll choose what I work on option.

6. Scroll all the way down to the Miscellaneous Income, 1099-A, 1099-C (under less common income) and click Start/Update.

7. Click Start/Update next to Other income not already reported on a Form W-2 or Form 1099 and follow the online screen prompts to enter your income.

If you need to get back later to report expenses:

TurboTax will guide you step by step through the process. 

·         Type in "business expenses" in the search box in the right hand corner of your screen

·         Click jump to business expenses.

TurboTax will ask you for expenses in various categories.

Note: Based on your expenses, you may have to upgrade to a higher version of TurboTax. 

 






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