IANAL, IANAA, etc. The year before I went back to school, I actually had negative income -- my business expenses exceeded my income, as I spent money on a sta

IANAL, IANAA, etc. The year before I went back to school, I actually had negative income -- my business expenses exceeded my income, as I spent money on a startup that never went anywhere. It's best to talk to an accountant who can file for you and make sure you handle such a thing correctly. But, unfortunately, I've certainly had a year where I had negative income.