My sole proprietor business suffered its first negative year due to covid, but turbotax only allows entry of positive income. How do I reflect the loss in income?
My sole proprietor business suffered its first negative year due to covid, but turbotax only allows entry of positive income. How do I reflect the loss in income?
Each year as I am self empployed, I record my income as such in the self employment category. However my business is in the negative for earings having to refund clients during covid without new income coming in. How do I record this? For my usual are of self employment in Turbotax it only allows a positive income to be reflected. If I indicate a 0 income, I still have a loss which should be carried forward to next years? But their is no way to show this. Thank you!
My sole proprietor business suffered its first negative year due to covid, but turbotax only allows entry of positive income. How do I reflect the loss in income?
You can enter your Total Revenue before the refunds on the income page. Then in the box labeled "Amount of returns, allowances, and discounts" you can enter the same amount, so that your income will be zero. When you enter your expenses, that will give you the loss, which you can carry forward.
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