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Level 3
posted Apr 12, 2021 9:44:29 PM

TurboTax doesn't seem to offset my taxes owed when I lost money in my business

I have a job where I get W-2, investment income with capital gains, and single-member LLC.  After submitting my W-2, investment income I owe about $1k in taxes.  After submitting my business income and expenses my business incurred a lost of $4k from consultation, fees, advertisement, etc.  I was expecting the taxes owed to drop significantly but to my surprised it was unchanged.   What's going on?

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1 Best answer
Level 3
Apr 13, 2021 10:23:01 AM

Thanks for the tip.  I went back to the Business section where Sch C is.  I figured the Active Role might be cause so I change the answer from "No" to "Yes".  Right after I selected "Yes" it was able to offset my entire tax owed with some tax return back.  The reason I selected "No" before was because I really don't spend much time on this business because its automated.  

 

2 Replies
Level 13
Apr 13, 2021 7:00:25 AM

A couple of thoughts:

  • Have you actually looked at your return to understand what your Schedule C looks like?
  • You need to go through the TT questions and make sure you answer the question about at-risk correctly.  You need to make sure you check the box where it asks if all of your investment is "at-risk".

Level 3
Apr 13, 2021 10:23:01 AM

Thanks for the tip.  I went back to the Business section where Sch C is.  I figured the Active Role might be cause so I change the answer from "No" to "Yes".  Right after I selected "Yes" it was able to offset my entire tax owed with some tax return back.  The reason I selected "No" before was because I really don't spend much time on this business because its automated.