PattiF
Expert Alumni

Get your taxes done using TurboTax

You will be able to enter this into your tax return as long as the unpaid e=debt is worthless. You will need to document your efforts to collect the money by letter or invoices.

 

You can enter the bad debt on Form 8949. You will not be able to deduct the entire amount in the first year. This TurboTax Tax Tip has the details on handling a bad debt in your taxes.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"