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Level 1
posted Feb 28, 2024 11:42:30 AM

How to account for a bad debt in TT Self-Employed

How to I account for a bad debt (non-payment for services rendered) in TurboTax Self Employed?

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1 Replies
Expert Alumni
Feb 28, 2024 11:59:15 AM

If you are a cash-basis taxpayer, you don't report bad debt on your Schedule C.  If you are an accrual based taxpayer that claimed the income previously, then you could deduct it provided you can prove your collection efforts.    

 

Topic No. 453 Bad Debt Deduction | Internal Revenue Service

 

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