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RD
RD, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 8784
Experience:  CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
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I am retired but during the months of November I do jobs playing

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I am retired but during the months of November I do jobs playing Sanya Claus. This year work was slow and I worked 3 weeks in December for a local town and earned $2500.00 I also dopnated time to a charity. My question is I show no income because the township didn't pay me until January 20th 2009. However all my expenses for Santa weree in 2008. How do I show no income but lots of expenses?

Do you receive Form W-2? or Form 1099?

Do you have any other income?

Customer: replied 7 years ago.
No 1099 because that will be issued as 2009 income but all my expenses are in 2008. I am on social security. I have expenses in Santa wardobe, travel, hair styling etc. Also I have an internet site for advertising.

But are you paid as a contractor? or as an employee?

Customer: replied 7 years ago.

Hi;

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.

 

 

Customer: replied 7 years ago.

Thanks RD;

What you are saying I can either use my expenses this year or carry them over. If I can figure out how to put this in turbo tax thjat will be great

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.

 

 

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.

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