This year I had no income but had about $10,000 in expenses. How can this be reported on TurboTax?

[thilly1]

This is my income as an SEP reporting on Schedule C.

[RobertG · Accepted solution]

Normally you can file a schedule C with no income.

Are you talking about SEP IRA contributions?

For a self-employed individual, contributions are limited to 25% of your net earnings from self-employment (not including contributions for yourself), up to $57,000 (for 2020; $56,000 for 2019). You can calculate your plan contributions using the tables and worksheets in Pub. 560.

Before you enter your SEP IRA contributions, first make sure you've entered self-employed income. This allows us to calculate the maximum amount you're allowed to contribute to your SEP IRA.

Once your self-employment income is entered:

1. In your return, type SEP IRA contributions (use the whole phrase) in the Search box.
2. Select the Jump to link at the top of the search results.
3. This will take you to the Self-Employed Retirement Plans screen.
   • If you get a message that Self-Employed Retirement Plans are only for self-employed individuals, this means that you have not entered any self-employed income.
4. TurboTax will ask you about whether you contributed to different types of retirement plans. Select Yes to Keogh, SEP and SIMPLE Contributions.
5. On the Your Contributions screen, you’ll be able to input your SEP IRA contributions.

[Carl]

Assuming those expenses are for some kind of business you have which is reported on SCH C as a physical part of your personal 1040 tax return, if your business was not "open for business" in 2019, you will not file a SCH C for 2019. Period.

Expenses incurred prior to your business being "open for business" are start up expenses. You can not claim them until you file the tax return for the first year the business is actually open for business. It flat out does not matter in what year or years those startup expenes were incurred either.

Note that startup expenses do not include any assets purchased that are used on a recurring basis in the production of business income. Assets are capitalized and depreciated over time, with depreciation starting on the first day the business is officially open for business.