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Tax Year Prior to 2020: Can I deduct expenses as an independent distributor if I did not receive a 1099 I had a loss and no income? I did have advertising expenses and a business Facebook.

I invested a lot in advertising such as brochures and Facebook ads etc. I'm a Young Living Independent Distributor.

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Tax Year Prior to 2020: Can I deduct expenses as an independent distributor if I did not receive a 1099 I had a loss and no income? I did have advertising expenses and a business Facebook.

Yes.  The day you were "able" to receive income is the day your business started.  

Some expenses prior to your business start day can be considered Start Up costs.  Please see this link IRS Business Start Up Costs

You will file a Schedule C as a self-employed person.  The Schedule C will flow onto your individual income tax return (Form 1040) and be netted with other personal income and expenses.

How to get to that area  While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area. 

When you set up your business, you can use your own name, address, and social security number. 

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful. 

Also, this link may be helpful to you IRS Small Business Help Center .

 

 

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