Im a contractor, my sales crashed. I made nothing. But I had tons of expenses.

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abbykat83
abbykat83 Member Posts: 2 Newcomer

I’m in sales, a contractor.

I made no sales in 2023, but I paid monthly dues, and supplies etc.


how does this work while filing?

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  • abbykat83
    abbykat83 Member Posts: 2 Newcomer
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    no income 2023

  • RyanZ
    RyanZ FreeTaxUSA Agent Posts: 70
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    Welcome abbykat83 to the FreeTaxUSA community!

    If your contractor activity is self-employed, you may be able to report some or all of the expenses on your Schedule C, even if you have no income. Expenses that would NOT be deductible on the Schedule C in a year of no income include any work-in-progress (spec homes), or any other expenditure that should be capitalized. Please refer to the Schedule C instructions (Part II. Expenses) https://www.irs.gov/instructions/i1040sc

    Generally, your business is considered to be a For Profit activity if you report a net profit for 3 of the past 5 years. This and other considerations should be evaluated to determine if your business might be classified as a hobby. https://www.irs.gov/newsroom/know-the-difference-between-a-hobby-and-a-business

    If you are an employee for another company, the dues and subscriptions would not be deductible.