Can you use a business loss to offset personal federal income tax

I have a full time job w-2. I also started a s corp business and its a loss. Can I use my business loss against my w-2 federal tax

posted

Yes, your business loss from your S-Corporation will offset your earned income reported on your W-2.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Maybe.

The loss could be limited to Basis limits, At Risk limits or Passive limits. But if none of those apply to your specific loss, then yes, after the corporation prepares its own tax return, the loss would flow to your personal tax return and offset other income.