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brian434
New Member

I have a sole prop. My wife is the primary earner and we file joint. Will my business losses (mileage) help us reduce our total taxes beyond my business income?

My wife is w2. I am 1099. If my losses exceed my income will it reduce the amount of tax we need to pay on my wife's income if we are filing jointly?
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tagteam
Level 15

I have a sole prop. My wife is the primary earner and we file joint. Will my business losses (mileage) help us reduce our total taxes beyond my business income?

Net losses from a trade or business (in your case reported on Schedule C on a joint return) can be used to offset other income.

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2 Replies
DJS
Level 7
Level 7

I have a sole prop. My wife is the primary earner and we file joint. Will my business losses (mileage) help us reduce our total taxes beyond my business income?

Yes, The IRS allows taxpayers to write off the loss from a business on your personal tax return.  Example, if you or your spouse have a regular “day” job, you can use the loss from a business to offset your W2 or other income.  

Answers are correct to the best of my ability but do not constitute legal or tax advice.
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tagteam
Level 15

I have a sole prop. My wife is the primary earner and we file joint. Will my business losses (mileage) help us reduce our total taxes beyond my business income?

Net losses from a trade or business (in your case reported on Schedule C on a joint return) can be used to offset other income.

View solution in original post

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