topic I opened a new business at the end of 2020. I didn't get a 1099 and had no sales. How do I report it? in Business & farm

I opened a new business at the end of 2020. I didn't get a 1099 and had no sales. How do I report it?

javnino — Wed, 03 Mar 2021 20:22:01 GMT

Re: I opened a new business at the end of 2020. I didn't get a 1099 and had no sales. How do I re...

MinhT1 — Wed, 03 Mar 2021 20:33:11 GMT

If you had no income to report and no expense to claim for your business, then there is nothing to report about your business on your 2020 ta return.

Re: I opened a new business at the end of 2020. I didn't get a 1099 and had no sales. How do I re...

javnino — Wed, 03 Mar 2021 21:56:38 GMT

Thanks @MinhT1 for your quick response. I actually did have expenses to set up my business, so I am reporting that. However TurboTax is asking for 1099 which I didn't receive as I didn't have any sales in 2020. Could you pls advice

Re: I opened a new business at the end of 2020. I didn't get a 1099 and had no sales. How do I re...

RayW7 — Wed, 03 Mar 2021 22:10:59 GMT

You can enter your expenses in Schedule C with no income.

There is no minimum income to file the Schedule C. All income and expenses must be reported on the Schedule C, regardless of how little you earned.

-for more information on start up costs follow this link-

Startup Business Tax Tips - TurboTax Tax Tips & Videos

Re: I opened a new business at the end of 2020. I didn't get a 1099 and had no sales. How do I re...

javnino — Wed, 03 Mar 2021 22:57:34 GMT

thanks @RayW7 for your answer. When I hit Schedule C link it takes me to fill out the 1099-NEC which I don't have. Which option should I choose to enter $0 sales in Turbotax? These are the options that I can see but none of these is manual to put in a $0

COMMON INCOME

Form 1099-NEC, new IRS form for nonemployee compensation (replaces 1099-MISC)

Other self-employed income, includes 1099-K, cash, and checks

LESS COMMON INCOME

Form 1099-MISC, for miscellaneous and nonwork payments

Uncommon income, includes awards, interest, debt previously deducted

Re: I opened a new business at the end of 2020. I didn't get a 1099 and had no sales. How do I re...

RayW7 — Wed, 03 Mar 2021 23:19:34 GMT

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.