Deductions & credits

If you are saying the business operations actually began in 2021, you can enter the start up costs on your return for 2021.  As indicated you can use either option or both depending on the cost of your start up expense.

To begin your business entry follow the steps below.

1. Open or continue your return
2. Search for schedule c and click the Jump to link in the search results
3. Answer Yes to Did you have any self-employment income or expenses?
4. Follow the onscreen instructions

5. Once you have started your business schedule follow the instructions to add more expenses:

6. Business Expenses. Continue past the expense categories (or choose Other Miscellaneous Expenses) to the page titled "Enter Business Expenses Not Yet Reported" and enter the description & amount 
7. If the start up expenses are greater than $5,000 you will enter an Asset for any excess. See the image for the description selection.

8. Start up Expense listed as a 'Miscellaneous Expense' - see the image below