malaki Posted December 31, 2007 Share Posted December 31, 2007 ok im starting to think about tax season coming up and this will be my first year filing income tax for my business. my ? is do i need to file for my business if my net was not over $ 400 after all my supplies and such me and my husband file jointly and i did work a fulltime job till october this year. i pay my sales tax quaterly but this year has been slow and alot of money going in to the business but not alot of profit. my cpa is on vacation for 2 weeks so i thought i would ask here. thanks. Quote Link to comment Share on other sites More sharing options...
momtohaley2004 Posted December 31, 2007 Share Posted December 31, 2007 Personally, I would file and take a loss. You file using a schedule C I believe it is for your income tax. You would not be required to file schedule SE because that is for self-employment income tax. I would file the c and claim show what you did or did not make. If it's a business loss overall (like me I made money but still have a loss for the year) then you are able to deduct the amount of the loss from your personal taxes. I have had a business other than this one for over 6 years and any year I have a loss, I can deduct from my personal income taxes and actually I end up getting money back. Quote Link to comment Share on other sites More sharing options...
heirloomoriginals Posted December 31, 2007 Share Posted December 31, 2007 In PA if you collect sales tax you have to turn your business stuff in on your taxes. last year I had a loss and it got us back some more money on our return. I am sure it will this year, too, but hopefully next year I can show some profit. In PA, as long as you make less than $5,000, you won't have to pay taxes on it!P.S. I just realized you are from PA!!Steph Quote Link to comment Share on other sites More sharing options...
malaki Posted December 31, 2007 Author Share Posted December 31, 2007 so i will just have to fill out a schedule c along with my joint 1040 with my husband correct. thanks for everyones help. Quote Link to comment Share on other sites More sharing options...
momtohaley2004 Posted December 31, 2007 Share Posted December 31, 2007 I"m not from PA but that is my take on it. Schdule c or C-EZ will work. there is a flow chart to see which you can use. In your case, probably the EZ one if your loss was less than 5,000. Then, that form shows how much of a profit or loss you have that you claim on your taxes. Less than 400 dollars profit you don't pay self employment tax. Verify this all with your tax professional but this is how I always have done it. Quote Link to comment Share on other sites More sharing options...
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