Business Income

Mark1193 · ‎March 1, 2022

I have a very small business with only one customer, 2021 income was less than $400.00 and no 1099 form was sent to me. They told me I didn't make enough to file. Is that right? If not then what do I do?

Cynthiad66 · ‎March 1, 2022

@Mark1193 - You must file a Schedule C for self employment if your net income is $400.00 or more.

You have to file an income tax return if your net earnings from self-employment were $400 or more. If your net earnings from self-employment were less than $400, you still have to file an income tax return if you meet any other filing requirement listed in the Form 1040 and 1040-SR instructions PDF.

Use this link for more information: Self Employed - IRS

However, if your expenses for your income is more than income, you may have a net loss that can reduce your other taxable income. Take a look at the Schedule C to determine the expenses that you incurred for the business. Use the link above for more information.

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Carl · ‎March 1, 2022

I would asume you have other income, since you couldn't even survive on month on less than $400. Since you'll probably be filing a return anyway, I would suggest you go ahead and report it on SCH C. More than likely with allowed business expenses, the business will show a loss. That loss will be carried over to next year, where the business can deduct it if you show a taxable profit for the business on the 2022 tax return.