Quick question. New business started in Nov 2018 by my wife as sole proprietor and have under $5000 in startup costs. Income together is $120,000 between the both of us jointly. I have my own business as sole proprietor as well. When I enter just advertising costs for 2 months of $1200, it only decreases the Federal Tax Due (in red at top) by only $216 instead of the entire $1200. I tired to enter it under regular business expense and it is the same $216. I thought startup deduction will decrease the Fed Tax by the same amount of $1200 (up to $5000). Is it just a percentage of 18% then?
