How do I report my situation properly on TurboTax? I was a freelancer in 2019, owned a business in 2019 and ended it in 2019. I have a 1099 form from a client.

For other clients, I do not have any tax forms but I know how much I made. I'm just confused how to input my business which I made $300 cash (but have $1,000 in advertising deductions), and my total freelance income (having only one 1099 form, but needing to report the income for other clients).

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Expert Alumni

Jan 30, 2020 9:41:27 AM

Here's how you enter your self-employment income.

Under Self-employment income and expenses
report the cash as: 'Other self-employed income. Includes 1099-K, cash, and checks.'
Report the 1099 as: '1099-MISC. Add all 1099-MISCs for this work.'

Level 2

Jan 30, 2020 9:46:52 AM

Thank you!

On a side note, the business that I started (and ended in 2019) had a profit of $300, but with all my advertising deductions, web hosting fees, and software fees, I have a net income of $-1,189.00. Is this ok to submit to the IRS (having a negative profit because of deductions)? I no longer run this business.

Expert Alumni

Jan 30, 2020 10:00:21 AM

Yes, you can deduct your loss even though you ended this business. Having a loss on a small business is very common during the first three years.

Even though you aren't still in business, be sure to keep your records of your expenses for at least three years after you file.

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How do I report my situation properly on TurboTax? I was a freelancer in 2019, owned a business in 2019 and ended it in 2019. I have a 1099 form from a client.