Hello all,
I am doing a bit of research online, but I cannot find a clear answer on this topic. Currently, I am a full time W2 employee but I've made a little bit of side income this year that I could classify as a sole proprietorship.
Unless I am reading something incorrectly, do deductions that outpace sole proprietorship income eat into tax liability on the W2 side since you are filing everything together? I.E, let's say you have $50,000 in income from your day to day job, then another $5,000 as a sole proprietorship. If your deductions for vehicle expense, portion of rent etc are more than the $5,000 generated on the sole proprietorship side, are you able to write off the delta as an offset into the W2 income?
Thanks.
