Work from home & home based business 1)I work for a company and I receive W2. My wife also works and she too receives her W2.
My wife also works for a company as part timer. For this she works from home. For this part time work, my wife received 1099 from her client(for last year) and we showed it in our joint tax filing. We did not show any expenses for it.
As part of my regular work, I work from home for 4 hours/day. I have a separate room for my work with table, chair, laptop, printer, phone etc., Can we get some tax deductions for this as I and my wife are working from home? If answer is yes, What I need to do for this? Can I claim it for last year during next year tax filing?
2)For my wife's part time work, could we open a new home based business? She would be the only one person in that company. What type of company should we open? We would like to save our personal savings; not to be affected by any law suites or litigations. Sole Proprietorship or LLC?
How to file the taxes for home based business? Is it going to be separate tax filing or part of our joint tax filing? |