Taxable Income is $0 even though I have losses

[sgree063]

How do I get Turbo Tax to calculate my losses? I haven't had an issue in years past? I double checked and the at risk box is not checked. Please help.

[VolvoGirl]

I assume you are asking about Schedule C?   If you are not showing a loss on Schedule C.

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

[Mike9241]

what type of losses on what schedule or form.  do you have other income that is greater than that loss? 

[VolvoGirl]

Oh and the taxable income on the 1040 line 15 can never be less than 0.  Even if your income - Standard Deduction is less than zero.  0 is the limit.  

[sgree063]

I'm not going off of a form, I'm simply taking values from my book keeping software and answering the questions in turbo tax. In order to greatest to least I have, equipment rental, advertising, vehicle, meals (50%), communications, assets, loan interest, home office, taxes licenses, along with some smaller expenses.

[VolvoGirl]

We meant what form are you filling out?  You are filling out Schedule C for self employment.  See my answer above.

[sgree063]

I guess I'm filling out Schedule C? I don't know. Turbo Tax only tells me it's self employment income and expenses. I just don't understand why I've been able to claim a loss in years past but not this year. Thanks all for your help. 

[VolvoGirl]

Yes you have Schedule C.  You should have Schedule C in last year's return.  You should be checking over your return each year before you file to make sure it's right.  As I said above....

If you are not showing a loss on Schedule C.

Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year.  And you have to answer yes to both questions about exclusive and regular use, not just one.  The area of your home office must be used regularly and exclusively for business to deduct it.

Or you checked the box on 32b saying Some Investment is Not at Risk.

[sgree063]

Does anyone know how to find question G from Schedule C within turbo tax?

G Did you “materially participate” in the operation of this business during 2022? If “No,” see instructions for limit on losses . Yes No

[VolvoGirl]

Try this, they may have changed the steps this year.  You need to find the Business Profile section.

Go to Federal Taxes Tab

Wages and Income,

Then scroll way down to Business

Then…..

Business Income and Expenses - Click the Start or Update button

You should see the Business Summary page that lists your businesses, (right below the list you can Add Another Business)

Then click EDIT by the business name and the next screen should be a list of  topics,

Business Profile, Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Click Start or Update by Business Profile

Then click Edit by the item you need to change