“How should I go about filing this:====>In general, as long as the amount on Sch C line 29/ 31 is LESS than $400, then you do not need to file yur return; you do not need to pay quarterly estimated tax ; OR no self employment tax either.It costs more to file your return than you can deduct your biz loss on your return.
OF course,Even if yur biz exp exceeds your biz income sometimes you need to file your return on Sch C of 1040 to deduct your NOL; you can use your losses to your advantage. When you have a business and your expenses exceed your income for the year, you may have a net operating loss for the year. After preparing your Form 1040 tax return, if the amount on line 41 is a negative number, you may use Form 1045 to determine the allowable NOL;however, in your case to claim your NOL, the amount is small and it costs more to file your biz return. |