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Should I file for taxes this year?

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What is the name of your state (only U.S. law)? California

I'm a brand new business, just started last February. Mostly I've been buying equipment for my business, which I kept receipts for, but I HAVE had some customers, but not over 400 dollars worth of income. I've taken in customers although I'm not fully functioning yet.

I also get social security disability and SSI. The social security admin. told me when I started that I won't have to tell them when I make money if I know it will be a "loss" at the end of the year. They told me that if I don't expect to make a enough money during the tax year I should just file to show them the money I DID make is not substantial enough to be considered income...I think I interpreted that correctly, not totally sure.

Should I file to show them it was a loss, or should I report the little income I happened to make ? I would think I should file to get what little Earned Income Credit I have coming, and to show Soc. Sec. that it WAS a loss... No?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? California

I'm a brand new business, just started last February. Mostly I've been buying equipment for my business, which I kept receipts for, but I HAVE had some customers, but not over 400 dollars worth of income. I've taken in customers although I'm not fully functioning yet.

I also get social security disability and SSI. The social security admin. told me when I started that I won't have to tell them when I make money if I know it will be a "loss" at the end of the year. They told me that if I don't expect to make a enough money during the tax year I should just file to show them the money I DID make is not substantial enough to be considered income...I think I interpreted that correctly, not totally sure.

Should I file to show them it was a loss, or should I report the little income I happened to make ? I would think I should file to get what little Earned Income Credit I have coming, and to show Soc. Sec. that it WAS a loss... No?
You should file. Losses can be carried forward into future tax years to be deducted from future profits. You want to file a tax return to establish those loss carryforwards.

However, you will not get any EIC if that was your only earned income and you had a loss.
 
thanks


Should I file a schedule C ?

H/R block charges 300 for that service. No sense in having them do it, if I'm not getting anything back.
 

LdiJ

Senior Member
thanks


Should I file a schedule C ?

H/R block charges 300 for that service. No sense in having them do it, if I'm not getting anything back.
Yes, you need to file a Schedule C...and its likely something that you cannot properly do on your own. Shop around. Believe me there are lots of good tax professionals who will charge you significantly less than H/R Block.

However, even if 300.00 is the best that you can do, price-wise, if you continue on with this business and it becomes successful, that 300.00 will be worth its weight long term.
 

davew128

Senior Member
Yes, you need to file a Schedule C...and its likely something that you cannot properly do on your own. Shop around. Believe me there are lots of good tax professionals who will charge you significantly less than H/R Block.

However, even if 300.00 is the best that you can do, price-wise, if you continue on with this business and it becomes successful, that 300.00 will be worth its weight long term.
Yeesh. Reputable preparers don't include Block and they don't do Sch C for under $300.
 

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