Do I need to file a tax return

[Britchick8529]

I am a new self employed business person.

I have tracked all of my spending, etc on Quickbooks, and it shows my business is running at a loss right now - which I expected as it is new.

But, I dont know if I need to file a tax return, as quickbooks says I owe nothing for this first quarter of 2018.

[Anonymous]

Hey @Britchick8529,

Welcome to the QB Community. Congratulations on starting your new business! 

That's a totally valid and good question. It depends on a number of factors - were you working as a 1099 contractor, are you an established LLC? Is QuickBooks the only place where you've recorded your business specific income (so that you can prove that you did, in fact, operate at a loss)?

This TurboTax conversation might be helpful -  to summarize, there are some complications that go along with first-time business filings so most folks on the thread recommend talking to a tax professional. 

The IRS (the absolute authority on taxes ><) has some articles about filing self-employment taxes as well as an online learning portal, I'd recommend starting there.

[Britchick8529]

Great info.

Thanks so much.

[Anonymous]

@Britchick8529, my pleasure! Taxes are complicated. For any skill, if you can, it's good to learn from a professional at the beginning so you can eventually do it on your own.

[Sangeethmathew]

Hi,

Its always good to file returns even if we have to file '0' (zero) returns.

[FireFish]

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@Britchick8529 wrote:

I am a new self employed business person.

I have tracked all of my spending, etc on Quickbooks, and it shows my business is running at a loss right now - which I expected as it is new.

But, I dont know if I need to file a tax return, as quickbooks says I owe nothing for this first quarter of 2018.

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It's as simple as this: Any business making or loosing money within the US that has a Federal EIN number needs a coresponding state and Federal tax return submitted for any activities in 2017.

The IRS wants a return on your compamy no matter if you're profitable or not yet turning a profit.

And if it makes you feel better, Amazon isn't profitable yet either :-)

[Anonymous]

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@FireFish wrote:

And if it makes you feel better, Amazon isn't profitable yet either :-)

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Non-sequitur, but I always remind myself that when I think about the value of impact in the digital age!

[Eugene Shestakov]

Hi, 

Whether you have formed a legal entity or not you should absolutely file a tax return.  There are different forms for different entities even if you were essentially doing business under your SS#.  You were in business last year and had invested time and money into the business and therefore, you are allowed to take the loss on your personal income taxes by filing proper tax form depending on your situation which will benefit your 2017 tax filing. In 2018 you have to analyze your business and depending on what you do consider creating a legal entity and applying for an EIN Number, keep it proper and avoid future headaches. 

[Sue10]

Yes you do.  The loss can be used to offset other income on your Form 1040 if it is from a schedule C.  If the loss exceeds your other sources of income, it can be carried froward or back.  If the loss is on a Corporate return, it can be carried forward.

Good luck!

[EmilyCowan]

Hey @Britchick8529 - welcome to QB Community, and congrats on making the leap to self-employment! Just curious: What sort of business are you in?