Do you receive Form W-2? or Form 1099?
Do you have any other income?
But are you paid as a contractor? or as an employee?
I am not an employee so I guess I am a contractor. They hire me each year for the merchants and it is a picture taking event. Last year (2007) they sent me a 1099 which I included in my 2007 taxes. This year they didn't sent a 1099 because they didn't cut the check or pay me until almost the end on January 2009
You will report the expenses you incurred and since there is no income the loss will offset your other income and excess loss if any may be carried forward(if you elect not to carry back) and used in future years.
Let me know if you have any question.
Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.
No, you will claim it this year. But if you do not have enough income(other income - interest, dividend etc) than the loss will be NOL and will be carried forward(if you elect so) and used in future years.