I didn't make any income last year but, I did have a business last year and closed it in the beginning of the year. I can be claimed as a dependent. How do I file my tax?

[myang28216]

I am of age (over 21 and 24) I am not in college. my business was a sole prop., llc. I had no employees but myself.

[DavidD66]

If you had no income, you do not have to file a tax return.  If you had any expenses, you file to claim the expenses and then carry your loss forward to offset future income, but you are not required to do so.

[myang28216]

Thank you for the response. However, I received a letter from the IRS stating to, "file the last returns for your business. Show the date it was discontinued and mark each return 'Final', so we can update your records". 

[AliciaP1]

You can use TurboTax CD/Download software to complete your 2021 tax return and mark the Schedule C as "ended in 2021" to designate the final return.  You cannot efile the return anymore, but you can file the paper return.  

See How do I prepare a 2021 tax return? to download the software.

[myang28216]

I had already filed my 2021 taxes though.

[DianeW777]

Yes, now you must finalize your business by filing the 2022 tax return if any income was received for the business that was $400 or more.  If you did not receive income at or above that amount you do not have to file.

If you used any equipment for depreciation and you have removed them from service in your business you may have to to report if you sold any such assets.

If you did receive at least $400 you must file to record any expenses you may have had to offset the income to reach your net profit.

• Form 1040 Instructions, page 8