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Level 1
posted May 31, 2019 11:01:56 PM

If my income is solely from a personal business which I report on schedule C can I a)elect to take the standard deduction or b) do I have to itemize deductions?

My only income is from a personal business which I report on schedule C.  Can I file using the standard deduction for other non business activity or do I have to itemize deductions for other personal non business related expenses.

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1 Best answer
Level 3
May 31, 2019 11:01:58 PM

You can do either.

Your Schedule C income goes on the first page of your 1040.  It's combined with all income, even from your non-business activities.

Your standard deduction is what the government gives you for your filing status.  Your itemized deductions are what you pay in medical bills, home mortgage interest, taxes, etc.  You take the HIGHER of the two numbers and subtract that from your adjusted gross income (AGI) to arrive at your taxable income.

The bottom line?  You can take either type of deduction, whichever is higher.

1 Replies
Level 3
May 31, 2019 11:01:58 PM

You can do either.

Your Schedule C income goes on the first page of your 1040.  It's combined with all income, even from your non-business activities.

Your standard deduction is what the government gives you for your filing status.  Your itemized deductions are what you pay in medical bills, home mortgage interest, taxes, etc.  You take the HIGHER of the two numbers and subtract that from your adjusted gross income (AGI) to arrive at your taxable income.

The bottom line?  You can take either type of deduction, whichever is higher.