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Old 03-21-2015, 11:46 PM
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Small Business

I have a small business that began in October of 2014, that incurred numerous expenses.I however, did not open for business until January of 2015, nor have I been able to net any sort of income from the new business as of yet. I also have a current day job that I pay income taxes on.

Questions:

Do I need to file the Schedule SE self employment tax form? Can I claim those expenses at all if I don't file a Schedule SE for 2014? How would this work? Can I deduct those expenses from my normal 1040?

Forgive me, I'm pretty new to this, so thanks for any help.



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Old 03-24-2015, 11:35 PM
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Do I need to file the Schedule SE self employment tax form?=====>>unless the amount on Sch C of 1040 line 29 / 31 is $400 or exceeded $400 you donot need to file return and also unless the amount on Sch SE line 2/ 3 is also $400 or exceeded $400, you donot need topay self employment tax either.

Can I claim those expenses at all if I don't file a Schedule SE for 2014?=>To claim your net operating income(expenses exceeded your income on SCh C) , you need to file Sch C of 1040 for 2014.

How would this work? Can I deduct those expenses from my normal 1040==>> the irs allows you to use your losses against your income in future or past years for federal tax purposes. You might even be able to deduct your losses from your state taxes, but the rules for this vary from state to state.as your net operating losses exceed your other income, you can use the deficit to earn a refund from the IRS for taxes you paid in previous years. This carryback period is usually two years, although a three-year rule applies if your net operating loss is the result of theft or a casualty. Typically, you would first use your loss against the tax return you filed two years ago. Depending on the extent of your loss, you might have some left over. You could then apply this portion to your previous year's return. If there's still any loss remaining, you must carry it forward and apply it to your future year's return. For example, if you have $50k in losses in the current tax year, and if your taxable income was $30k two years ago and $15k last year, you'd get a refund for taxes paid in both those years and you could deduct $5,000 from your taxable income next year



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Old 03-24-2015, 11:41 PM
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Do I need to file the Schedule SE self employment tax form?=====>>unless the amount on Sch C of 1040 line 29 / 31 is $400 or exceeded $400 you donot need to file return and also unless the amount on Sch SE line 2/ 3 is also $400 or exceeded $400, you donot need topay self employment tax either.

Can I claim those expenses at all if I don't file a Schedule SE for 2014?=>To claim your net operating income(expenses exceeded your income on SCh C) , you need to file Sch C of 1040 for 2014.

How would this work? Can I deduct those expenses from my normal 1040==>> the irs allows you to use your losses against your income in future or past years for federal tax purposes. You might even be able to deduct your losses from your state taxes, but the rules for this vary from state to state.as your net operating losses exceed your other income, you can use the deficit to earn a refund from the IRS for taxes you paid in previous years. This carryback period is usually two years, although a three-year rule applies if your net operating loss is the result of theft or a casualty. Typically, you would first use your loss against the tax return you filed two years ago. Depending on the extent of your loss, you might have some left over. You could then apply this portion to your previous year's return. If there's still any loss remaining, you must carry it forward and apply it to your future year's return. For example, if you have $50k in losses in the current tax year, and if your taxable income was $30k two years ago and $15k last year, you'd get a refund for taxes paid in both those years and you could deduct $5,000 from your taxable income next year



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