Question

I made abt $1200 with freelance wfh. Filed (jointly) as self-employed, but it showed as loss overall. Good idea to show loss every year, or can I file differently?

Forum|Forum|5 years ago
January 13, 2021
1 reply
0 views

This has shown as loss for last couple of years. Made abt. same amount both years. Filed jointly as family w/husband

TurboTax Online

Employee

There is no reason to file differently, however there can be an issue if your business never shows a profit. If your business claims a net loss for too many years, or fails to meet other requirements, the IRS may classify it as a hobby, which would prevent you from claiming a loss related to the business. If the IRS classifies your business as a hobby, you'll have to prove that you had a valid profit motive if you want to claim those deductions.

Please see the following: https://turbotax.intuit.com/tax-tips/small-business-taxes/when-the-irs-classifies-your-business-as-a-hobby/L5NClTTtK

The hobby loss rule: https://www.irs.gov/newsroom/hobby-or-business-irs-offers-tips-to-decide

Answers are correct to the best of my ability but do not constitute legal or tax advice.**If this post is helpful please click on "thumbs up"**