Business expenses

No, you generally should not include expenses incurred while working as an employee for another company in your own business's accounting software. Under IRS rules, business expenses must be "ordinary and necessary" to your own trade or business. If you were an employee (W-2) during that period, the expenses you incurred while performing work for that employer are considered unreimbursed employee expenses. Following the Tax Cuts and Jobs Act, these are no longer deductible on a federal level for employees. However, you should track any expenses specifically related to the **startup** of your new business incurred before or during that window (such as licensing, formation fees, or equipment purchased specifically for your entity). These are categorized as **Section 195 Startup Costs**. In summary: 1. **Employee Expenses:** Do not include them in your business software. 2. **Business Startup Costs:** Include these, as they relate to your entity, even if incurred while you held another job. 3. **Operational Expenses:** Only include expenses incurred for your business once it began providing services or was available for hire (June 1). If you were an independent contractor (1099) for the other company, the answer changes, as you would report both that income and those expenses on Schedule C.