How to File $0 Income, $0 Expenses on my Schedule C Federal Return without getting ERROR message

Philli83pz19
Philli83pz19 Member Posts: 2 Newcomer
edited April 2025 in Income

For the entire year of 2024, my e-commerce business did not have any income or expenses. I had to step away from my online business for personal health reasons.

With that being said, I have entered $0 income and $0 expenses on my Schedule C for 2024. When I get to the final page before I submit. Free Tax USA gives me an error stating the following:

— You did not enter income or expenses for your business.

Please go back to the "Your Business Income - Schedule C" screen and enter any income or expenses you have for the business. If you did NOT have any income or expenses, please go back to the "Your Business Income - Schedule C" screen and delete the business. —

**When I go back to Schedule C income and enter $1.00 in Miscellaneous income.

The ERROR message is cleared.

Is there any way I can enter $0.00 income without getting this message?

I know the IRS requires me to file taxes each year regardless of my business income. I do not want to file $1.00 to raise any red flags.

Any guidance would be greatly appreciated.

Thanks

Answers

  • DaveT
    DaveT Member, Star Posts: 80 image
    https://community.freetaxusa.com/discussion/2415/how-to-file-0-income-0-expenses-on-my-schedule-c-federal-return-without-getting-error-message

    Why are you trying to file a Schedule C if you had no income or expenses related to a business?

  • Philli83pz19
    Philli83pz19 Member Posts: 2 Newcomer

    I appreciate the reply. I got it figured out. Thanks.

  • diytaxnewb
    diytaxnewb Member Posts: 1 Newcomer

    Hi,

    I am running into a similar issue, FTU won't process a form 8995 for QBI carryover unless i add a schedule c business. but it wont let me continue with the business having 0 income and 0 expenses for this year.

    Any solution?

  • GeorgeM
    GeorgeM FreeTaxUSA Agent Posts: 98 image
    Hello diytaxnewb:

    If the alerts you see after entering your business with $0 income and $0 expenses are Yellow Alerts, you can ignore those as they are advisory in nature and should not prevent you from e-filing your tax return.

    Our software should allow to enter your carryover QBI losses from the prior tax year. After entering your $0 income, $0 expense business for 2025, click on the Income tab, and in the drop down, click on Business Income Deduction Carryforward (right side, near the bottom of the list). Thereafter, continue through the Deduction Carryforward section and enter your QBI as a negative number when prompted.

    After completing the above steps, Form 8995 should be included with your federal tax return. You can view and download a copy of your Form 8995 from the Federal Tax Summary screen. By clicking on the Summary tab, the Federal Tax Summary screen will appear. Then scroll down that screen to the Deductions section and there you should see the QBI deduction with the option to view/download.
  • ss23
    ss23 Member Posts: 3 Newcomer

    I'm having the same problem. I get red error message if I put $0 income and $0 expenses.

    "Business Income/Expenses Missing (Schedule C)"

    And it won't let me proceed.

  • MatthewD
    MatthewD FreeTaxUSA Admin, FreeTaxUSA Agent Posts: 959 image
    Hi ss23,

    If you have a QBI loss carryforward AND you do not have any business income in the current year, a Form 8995 is NOT required. Keep a copy of your prior year Form 8995 with the carryforward. Then in the year you do have business income, enter the QBI Loss carryforward for the current year. to calculate your current year QBI deduction.

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