I have a client who lost everything in 2022. Her only income was from her LLC which was robbed before she even got started. Therefore she had a total NOL of ($37,000) on line 31 Sch. C.
Line 1 shows $35,000 in receipts but expenses eat that up and more. I have never done a return like this where the person had no other income. I am unsure on what credits she can claim with one child age 6. This is an amended return as the IRS sent her original back. It had many errors.
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If the IRS sent back the client's tax return without processing it, you should probably be filing a corrected original return, not an amended return.
I left some parts out as they were rediulous and did not pertain to my question. It is an amended now.
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