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    OneSolution's Avatar
    OneSolution Posts: 54, Reputation: 1
    Junior Member
    		  
    #1

    Aug 22, 2011, 11:00 AM
    Can you show your parttime business and deduct taxes
    Hi
    We as a couple make around 100k and we were thinking of lowering our tax bill. We expect that tax would be around 16k at end of the year. Besides putting money in 401k, what are the options available.

    I & my wife also work from home providing IT services although we had less success.

    Can any one guide how we can setup a company or corporation etc so that we can show it on our taxes and deduct expenses. Also anything else we need to take care for like registering the company or etc?
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
    Expert
    		  
    #2

    Aug 22, 2011, 07:21 PM
    If you are really working from home and people are paying you for your services, you are already in business, there is nothing else you do to start.

    You file those earnings under your social security number and can deduct legit expenses off your taxes.

    How do you advertise your business ?

    How do you do your book keeping, showing earnings and money spent ?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
    		  
    #3

    Aug 23, 2011, 03:40 AM
    You do not need to incorporate to file as a small business. If you are running a business, you can use Schedule C to enter business income and expenses to offset that income.

    There are tests that the IRS may perform to judge whether you are running a business or a hobby. You can go to IRS.gov and download information about Schedule C.
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