You will enter the $927.82 as your income. If you received a 1099 MISC I have included below how to enter it there. If you received cash, I am also including instructions on how to do that below. Each will be labeled. For your expense of $1,329.25, after inputting your income, you will be asked if you have any expenses, select yes and follow the directions. Because your income is less than your expenses, you will have a business loss. If you have any other form of income, your taxable income will be reduced by your business loss. If you do not have another form of income, the loss can be carried back up to 2 years or carried forward, up to 20.
Recording income from 1099 MISC
Recording Cash income
To record your cash income, please follow the directions below, selecting next/continue when finished entering details.
- Log into your account.
- Select Federal Tax from top of screen
- Then select Income & Expenses
- On next screen select, Check For More Income, in the blue box.
- Select, skip to see all income
- On the next page, scroll down the screen to select Show More at Less Common Income
- At bottom of page select Start at right of Miscellaneous Income.
- Select Other Income Not Already Reported On A Form W-2 or Form 1099 (top of list)
- Next - Did you receive any other wages - select Yes
- Put a zero in space; Wages Earned as Household Employee (unless applicable).
- Place a zero in space for Sick/Disability Pay (unless applicable).
- Select Yes on next page; Any Other Earned Income?
- Select Other on the next page 'Enter Source Of Other Earned Income.
- Enter your Description of income source then cash in the next column for all cash payment.
When finished entering all, select Done.