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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1 Best answer

Employee Tax Expert

Jul 7, 2020 1:20:17 PM

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.

Employee Tax Expert

Jul 7, 2020 1:20:17 PM

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.

Level 1

Jul 9, 2020 12:40:45 PM

Thank you for your valuable time and answer!

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