No work? You're still self-employed.

Hi June;

I have a simple question... I worked the first 6 months of 2010 as self-employed (1099), with one job with one company, from my home office, before the contract ended. I did not work the rest of 2010 because I could not find any work.

The way I look for work is internet job board searches. I do not advertise. Pretty dirt simple. My dilemma is regarding Federal taxes... Do I prorate my utilities, real estate taxes, home insurance and health insurance premiums for 6 months or for the entire year ?

Glenn
NH


Hi Glen,

Just because you could not find work as a self-employed does not mean that you are not self-employed.

If you offer your services to the general public, and your goal is to make money, then whatever your method of looking for work you are still looking. And that makes you self-employed for the entire year -- or as long as you were looking. And you can deduct indie business expenses for that entire time.

-- June