Yes, you should claim the business and enter it on your personal tax return on Form 1040 Schedule C (if you are a sole-proprietor or a have a single member LLC). If your intent was to earn a profit, you can claim the losses.
You will need either the Self-employed or Home & Business version of TurboTax to enter your new business. Click the links below for product information.
https://turbotax.intuit.com/personal-taxes/online/self-employed.jsp
https://turbotax.intuit.com/personal-taxes/cd-download/home-and-business.jsp
To create a Schedule C for self-employment in
TurboTax:
- Log on to TurboTax and
pick up where you left off.
- Click
the Search box in the right hand corner, search for
"Schedule C", and click the first search result "Jump
to Schedule C".
- You will see the "Your
self-employed work summary" screen. If you have entered a business into
TurboTax already, you will see it listed on this screen. (click on
attachment below for a visual aid)
- Click Add another
line of work (to
create a new business in TurboTax) or click Edit (if you already added the
business into TurboTax)
- TurboTax will walk you
through entering your income and expense
