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Level 1
posted Feb 12, 2022 8:41:39 AM

How do I get to the Schedule C 1040 form?

Hello,

I'm trying to file taxes for my business that I just started last year in June. I have not actually launched my business yet so I have no income to report, but I do have expenses. I'm a single-owner LLC with no employees and have selected the Self Employed package but I don't see a Schedule C form 1040 as an option, just the following:

 

Form 1099-NEC, new IRS form for nonemployee compensation (replaces 1099-MISC)
Other self-employed income, includes 1099-K, cash, and checks
 
LESS COMMON INCOME
Form 1099-MISC, for miscellaneous and nonwork payments
Import from Square
Uncommon income includes awards, interest, debt previously deducted
 

I did read that by filling out one of these forms, Turbo Tax will automatically fill out a Schedule C form 1040 but I don't know which form to use. Which one should I fill out? I appreciate any help. Thank you in advance.

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3 Replies
Expert Alumni
Feb 12, 2022 8:59:33 AM

The easiest way to get to the form is to follow the steps below,

 

When asked about income, enter a zero under cash if you can't just leave the section blank. Proceed to enter your expenses. Since you did no business in 2021, they may be considered start-up costs. Start-up costs are those expenses incurred in planning and setting up the business, costs you incur before you open the door.

 

As long as your start-up expenses are less than $5000, you can add them as Business Expenses. Continue past the expense categories (or choose Other Miscellaneous Expenses) to the page titled "Enter Business Expenses Not Yet Reported" and enter the description & amount (see screenshots below - click to enlarge).

 

If you have more than $5000 in start-up costs, the remainder is entered under Assets/Depreciation as a capital asset for amortization (TurboTax provides this category for you).

 

Level 1
Feb 12, 2022 9:03:07 AM

Ok, all of this is great information. Thank you very much. Just to be clear, I need to do this under the 1099-NEC form, correct? 

Expert Alumni
Feb 12, 2022 9:12:57 AM

No, choose the second option, CASH, shown in the screenshot, if you did not actually receive a 1099.