Example: Say I make $50,000 of W2 income at my primary job, and my total taxable income for 2017 comes out to $40,000.
If I also started a sole proprietorship in 2017 and only made $5,000 but had $7,000 of initial deductions/expenses/etc., then my self-employment taxable income would essentially be $0.
But would the extra $2,000 of self-employment deductions then carry over to further reduce my overall taxable income from $40k to $38k?
