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March 17, 2023
Question

If I started a business on Dec. 30th 2022, Do I need to file taxes for it this year?

  • March 17, 2023
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March 17, 2023

Is your business a sole proprietorship?

If your business is a sole proprietorship, you record all income and expenses from your own personal tax return on the Profit or Loss From Business (Sole Proprietorship) (Form 1040, Schedule C).

You don't have to report the business if you didn't have any income or expenses. However, you can claim expenses even if you don't have any income. 

 

Also, you might be able to claim start up cost. Start-up costs are amounts the business paid or incurred for creating an active trade or business, or investigating the creation or acquisition of an active trade or business. Start-up costs include amounts paid or incurred in connection with an existing activity engaged in for profit, and to produce income in anticipation of the activity becoming an active trade or business. IRS.gov

 

To report in TurboTax:

You need to upgrade to Turbo Tax Self-Employed (Online)/Premium or TurboTax Home & Business (desktop).

To report the income in TurboTax online:

  • Log in to your account.
  • Select  Federal  from the left menu.
  • Go to Wages and Income then select Income and Expenses.
  • Go to Self-employment income and expenses and click start. you'll be asked some general questions about your business.

 

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