Your Life

Your Life

Major life milestones often have a major tax impact. Changes in your marital status, having a baby or adopting a child can have significant impact on your taxes. This is the place to ask questions about dependents, real estate, and other various scenarios that play a significant role in what taxes you pay.

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Pioneer
Posts: 1
Registered: ‎10-13-2017

Small Business

I have recently started a craft business. I have my tax ID number. Is this something I can easily file with my personal taxes online? Or is there a bunch of forms for my expenses that I will need to have someone work up. I just started in September so we haven't really made anything with all the start up expenses.

 

 

Thanks

Rachael Ryan

Tax Pro
Posts: 5,780
Registered: ‎02-23-2016

Re: Small Business

Hi Rachel,

 

 

Welcome to the H&R Block community.

 

So when you own a business the type of tax form you have to file depends on the type of business.  Most start-ups are either sole proprietors or single owner LLCs, both of which attach Schedule C to their tax return.  On Schedule C you'll report your revenue and then deduct your expenses.  Most expenses are a straight-forward deduction of the cost, but some things such as vehicle use, inventory, capital asset purchases, & home office do have special rules and/or specific methods of figuring the deduction.  Just about everything is done directly on the Schedule C, but there is a special form for a couple of different things including the home office & vehicle usage deductions.

 

You'll only owe tax from the business activity if you have some net income after deducting all of your expenses.  Business owners pay the self-employment tax as well as the federal income tax, but the amount due, if any, is determined by the overall outcome of your tax return since credits can be used to reduce your tax.

 

If you haven't done a Schedule C before then you may want to go through your first one with a tax professional, but you can also do it yourself fairly easily with the H&R Block tax software or even by hand.  If you choose to give it a try yourself you can ask me questions on the community board whenever you have them.  During the tax season you'll get my attention faster by clicking on my name and sending me a private message.

 

Louis,

Senior Tax Advisor (Tampa, FL)