Self-employed but No Income

[TaxTechno]

How do I enter zero income for self-employed? I do have expenses, but Turbo Tax Self Employed will not let me file the return without an income, which I do not have. I can choose the cash option, and it then allows to enter zero income but doesn't show up anywhere?

[ColeenD3]

What doesn't show up? The zero on Schedule C? It doesn't need to. The zero was for program purposes to prevent you from forgetting to enter income. Line 1 would be blank.

[TaxTechno]

While entering the income on the self-employment page, Schedule C does not show up, maybe the information is passed to Sch C.  Under the business income page, I have selected cash option and entered zero, and when I go back to main page of business income and expenses, the cash zero income which I have just entered will not show up, and hence the system does not allow me to enter Home Office expenses. It says you can enter only after you have entered business income.

[Carl]

Was your SCH C business actually "open for business" on or before Dec 31 2021?

[ErnieS0]

You should be able to enter home office expenses with $0 income in TurboTax. The IRS will not let you create a loss with home office expenses, with the exception of home mortgage interest and property taxes.

Those are deductible home office expenses that are not limited to income from the business.

Try entering $1 for business income. See whether that let's you into the section. Any suspended deductions are carried forward to next year.

[TaxTechno]

yes

[TaxTechno]

I did enter $1 and it allowed me to proceed with the home office expenses section. However, it is not giving me any deduction for the home office even for the mortgage and property tax.

[LeonardS]

Home offices expenses deducted can not exceed the income reported.  If you only reported $1 then only $1 will be deducted.  The unused deduction for home office expenses will be carried forward to be used on future tax returns until it is all used up.@TaxTechno

[TaxTechno]

I understand. But I still can't enter home office expenses that could be used for deduction for subsequent years.  No option to enter mortgage and property tax. It appears I have to maintain separate record.

[Carl]

It "sounds" to me like you missed quite a lot in your process of setting this up. Assuming that 2021 was your first year of business with SCH C, I would suggest you delete the SCH C and start over. One thing it sounds like you missed, was the selection for indicating that you have a home office with that SCH C business, among other things.