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posted Jun 4, 2019 1:01:10 PM

Do I need to create a w2 for myself? If I run a business that I collect no money from. Should I create a w2 so I can deduct personal investments?

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Level 15
Jun 4, 2019 1:01:11 PM

If your business is a sole proprietorship or single member LLC that you report on SCH C as a part of your personal tax return, then under no circumstances do you issue yourself a W-2, 1099-MISC or any other kind of tax reporting document, ever.
The IRS considers a sole proprietorship or single member LLC to be a disregarded entity. That's why you report the business income and expenses on SCH C as a part of your personal tax return. The IRS considers money earned by such a business, to have been earned by the single owner of that business. So they don't recognize such a business as a separately taxable entity.
Note that you can not file the SCH C for self-employment income with the online free edition. If your business has no expenses, (not one penny) then you can use the online version of Deluxe and file a SCH C-EZ with your personal return. Otherwise, if your business will be claiming any expenses, then you have to use the online version of Self-Employed.
If your business does have expenses, you will find it cheaper to purchase the CD and use the desktop version of Premier that you install on your computer.