Hello TraveLynn,
Thank you for participating in our Ask the Expert event today. As to your question, you can write off your expenses from last year even though you didn't have any income. Whatever doesn't offset any other ordinary income can be carried over to this year to offset the prize money. So, yes, the prize money would be considered income and you can expense the cost of supplies regardless of the prize because it is an expense of your business. As to the laptop, software, and camera, yes, you can also expense that. Depending on the cost, you will most likely have the option to expense it all in one year or spread it out over a few years. It'll be your choice when you go through the TurboTax questions on the matter. I hope that helps.
