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Level 1
November 9, 2022
Question

I am trying to see if its possible to file tax together for W2 + Business (Sole P - Single owner)

  • November 9, 2022
  • 5 replies
  • 36 views
I am trying to see if its possible to file tax together for W2 + Business (Sole P - Single owner)  :

Details:

    Tax year 2022, Permanent resident, State : California
    I and spouse(Married filing jointly)  will get W2's for 2022, say for total X amount.
    I have EIN and Sole Proprietorship business, which started this year in 2022 

    For 100% business use i brought two vehicles in 2022 (GVWR > 6K lbs) and 1 sedan car (< 6k lbs) 
    For personnel use i have another suv, apart from above.
    I have very less business income this year as i recently started it, (say business income for 2022 =  Y)


I am trying to use full bonus deprecation on the two business vehicles i brought this year, and up-to 18K(max allowed limit, i believe) for the car as all three vehicles are for business use only.

My questions :

    Would i be able to combine the W2 and Business income i.e. X+Y in same filing, and use the 179+bonus 100% deduction on business vehicles for federal filing, would it help to reduce total AGI with 100% full bonus deduction for business vehicles?
    I am in California, looks like state only allows up to $25K deduction in year 1 on business vehicles, is it per vehicle or total ?
    what forms would be needed to use while filing, can your firm can file for me ? 

    Anything else i need to be aware of on the rules/requirements related to above scenario, if you can share links would be helpful

Appreciate your help and suggestions !

5 replies

Carl
Level 11
Level 11
November 9, 2022

A sole proprietorship or single member LLC is considered a disregarded entity by the IRS. Therefore, all business income/expenses are reported on SCH C as a physical part of your personal 1040 tax return. It does not matter if you are filing a joint return either.

If using the online version of TurboTax, then you will need TurboTax Self-employed. For the CD version, any flavor will work as all the CD/Desktop versions (except Basic) have the SCH C included in them. The higher versions just offer you more in program help.

 

Level 15
November 9, 2022

@Carl11_2 wrote:

For the CD version, any flavor will work as all the CD/Desktop versions (except Basic) have the SCH C...


According to the product matrix, even TurboTax Basic has Schedule C.

 

https://turbotax.intuit.com/personal-taxes/irs-forms

Level 15
November 9, 2022

Also, you can combine your W-2 and business income for the purposes of the Section 179 deduction, @ratneshsing-gmai 

rjs
Level 15
Level 15
November 10, 2022

@ratneshsing-gmai wrote:
I am trying to see if its possible to file tax together for W2 + Business (Sole P - Single owner)

You MUST file your W-2 income and your sole proprietor business income together on one tax return. That's the only way you can do it.