If I started a new business and funded this start up by take out money from an IRA would I be better off to file jointly or separate and do a business tax file? We have 2 kids to write off.

[Anita01 · Accepted solution]

If what you started was a sole proprietorship not filing as a partnership or corporation, you don't do a separate Business return.  You simply file a schedule C as part of your personal return.  

If you file married separate, you will lose all the credits and deductions related to your children, so married will be better.  The Schedule C for the business is just one form in your personal return.  You still report all your other sources of income and deductions in the same return.