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SnowStoked
Level 1

I am self employed, a job I did required me to do thousands of hours over what I charged, is this a write off?

I am self-employed, Single Member LLC, I majorly underbid a job and still isn't complete required me to do thousands of hours over what I estimated over 8 months, is this a write off in any way? I could not work on other projects for around 6 months but also didn't get paid for the work. Thanks in advance.

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JotikaT2
Employee Tax Expert

I am self employed, a job I did required me to do thousands of hours over what I charged, is this a write off?

No.

 

You are only taxed on your self-employed business for any income earned over your expenses. 

 

Since you never charged your customer for the income you should have earned, you won't be taxed on it and you cannot deduct it since it was not an actual expense that was paid out in cash.

 

 

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JotikaT2
Employee Tax Expert

I am self employed, a job I did required me to do thousands of hours over what I charged, is this a write off?

No.

 

You are only taxed on your self-employed business for any income earned over your expenses. 

 

Since you never charged your customer for the income you should have earned, you won't be taxed on it and you cannot deduct it since it was not an actual expense that was paid out in cash.

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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SnowStoked
Level 1

I am self employed, a job I did required me to do thousands of hours over what I charged, is this a write off?

Thank you for your valuable time and answer!

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