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?

[brian434]

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?

[DJS]

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.  

[tagteam · Accepted solution]

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.