Hi Curlydoc17, thank you for joining the TurboTax Special Forum today.
Congrats on your starting a consulting business in 2020 and made great effort in getting your name out there.
In general, consulting business is self employment, and the operation result is reported on Schedule C Profit or Loss from Business.
The IRS expects that if you start a business, you intend to make money at it. If you don't, your business might be a hobby. The IRS safe harbor rule is that if you have turned a profit in at least three of five consecutive years, the IRS will presume that you are engaged in it for profit.
https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a...
The pro bono work for nonprofits could fall into the category of charitable donations for Schedule A Itemized Deductions, but not as a Schedule C (sole proprietor or Single Member LLC) business expenses -
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Out-of-Pocket Expenses in Giving Services
Although you can't deduct the value of your services given to a qualified organization, you may be able to deduct some amounts you pay in giving services to a qualified organization. The amounts must be: • Unreimbursed; • Directly connected with the services; • Expenses you had only because of the services you gave; and • Not personal, living, or family expenses.
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Page 6 of IRS Pub 526 Charitable Contributions
https://www.irs.gov/forms-pubs/about-publication-526
I hope the above provides some guidelines to your questions since it is hard to predict which tax returns would be selected for audit based on IRS computer algorithm.
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