The Small Business Tax Help Blog

Posts Tagged ‘inc’

Question: Self-employment income is $600 but expenses make profit negative, what do I file?

I got a 1099-MISC form from Google informing me of just over $600 of “nonemployee compensation,” which I gather I must report with form 1040, Schedule C, and Schedule SE. However, when I report my expenses on Schedule C, I have no profit and rather my “business” has lost about $1400. Since this means I have made less than $400 in profit, the amount which you must file SE taxes for, what do I do? Just send in the forms?
Also, I made no other income, because I’m a minor and just used AdSense on a website.

Answer: You should file a 1040 and a Schedule C. It’s silly in your case, because you won’t either pay taxes or get money back. Legally, you aren’t required to file (you would be if you had made a net profit of over $400). But it insures that the IRS won’t be coming after you at some point for unpaid taxes on the money Google paid you, so I’d do it.

You should file a federal return, but don’t have to mess with the state.

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