New Travel Advisor (Independent Contractor) - Can I deduct start up costs even if I didn't make any commission

[ChelleL]

I am a new travel advisor as of November 2023 working as an independent contractor for a host agency. I also work a full-time job as an employee. As a TA, I did not receive any commission in 2023 so will not receive a 1099.  I did however incur some start up expenses. Without a 1099, am I able to deduct those expenses?  If so, how?  Thank you!

[JohnW152 · Accepted solution]

Yes, you are, within certain limits.

According to Business Startup and Organizational Costs in the IRS' Publication 535 (2022), Business Expenses, 

Business startup and organizational costs are generally capital expenditures. However, you can elect to deduct up to $5,000 of business startup and $5,000 of organizational costs paid or incurred after October 22, 2004. The $5,000 deduction is reduced by the amount your total startup or organizational costs exceed $50,000. Any remaining costs must be amortized.

These would be categorized as Other miscellaneous expenses.

To enter, edit or delete other miscellaneous expenses in TurboTax Online:

1. Open TurboTax Online
2. Select Tax Home in the left pane
3. On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the Income & Expenses box, then select Start, Continue or Pick up where you left off
4. Select the dropdown to the right of Self-employment income and expenses
5. Select  Start, Edit, Edit/Add or Review 
6. Select  Review  below the specific self-employment enterprise
7. On the  Here's your info for this work screen, select Add expenses for this work
8. On the  Select any new expenses categories you have page, select the dropdown to the right of Less common
9. Select the checkbox to the left of Other miscellaneous expenses (If you don't see it listed, you may have to select the next page carat ( ">") below until you find it), then select Continue
10. On the Here's your info for this work screen, select Start to the right of Other miscellaneous expenses.  )If you wind up back on the Here's your info for this work screen, select Add expenses for this work)
11. On the Let's enter the miscellaneous expenses for your Animal farm services work page, enter your data, categorizing as "Startup expenses"
12. Select  Continue