Question

I started a business in 2020, and incurred expenses in 2020. I was paid at the beginning of 2021. Can I deduct the 2020 expenses against my 2021 income?

Can I deduct expenses i incurred in 2020 against the income i received in 2021 for that work?

No. You cannot deduct expenses from a previous year. You can only deduct expenses in the year that you paid for them.

However, you can amend your 2020 return to claim your business expenses even if you didn't have any business income.

[Edited 02/09/2022, 08:46am PST]

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