RayW7
Expert Alumni

Business & farm

You would not enter the income at either of those locations.

 

Go to the search bar, enter Schedule C, then jump to Schedule C

 

When entering information in Business Income and Expense do not enter any income but go directly to expenses and add the information.

 

While you may not have made any profits, if  you have expenses, you may want to file a Schedule C to claim them.  If you do not claim your expense in the year you pay them, you may not be able to deduct them in the future when you do have income.

 

Please read the following article to guide your decision; IRS Publication 334  It will provide you with advice on filing if you have any expenses,

 

Also, if you have another source of income that could off-set the loss in your business  so that you pay your tax at a lower rate.  Example; you receive a W2 from your job for $65,000 with no other income or adjusted gross income deductions, $65,000 would be your Adjusted Gross Income. However, if you had a business loss of $3,000 then your Adjusted Gross Income would be $62,000 that will lead to a reduction in taxable income.