The Standard Deduction or Itemized Deductions are for personal deductions on schedule A. That is separate from your Business expenses on schedule C. There is no "Standard Deduction" for business. You enter your actual expenses.
If you have self employment small business expenses you can take either the Standard Deduction or Itemized Deductions on the personal part of your return.
The Standard Deduction or Itemized Deductions are for personal deductions on schedule A. That is separate from your Business expenses on schedule C. There is no "Standard Deduction" for business. You enter your actual expenses.
If you have self employment small business expenses you can take either the Standard Deduction or Itemized Deductions on the personal part of your return.
You either itemize or take standard deduction. Your itemized deductions have to be more than your standard deduction before you will see a change in your tax owed or tax refund. The deductions you enter do not necessarily count “dollar for dollar;” many of them are subject to meeting tough thresholds—medical expenses, job-related expenses, casualty and theft losses, for example, must meet thresholds that are pretty hard to reach. The software program uses all the IRS rules that apply to the expenses you enter, and it tells you if you have enough to use your itemized deductions or if using the standard deduction is more advantageous for you. Here are the Standard Deductions for 2016
Your standard deduction lowers your taxable income. It is not a refund
2016 Standard Deductions
Single $6300 (65 or older + $1550)
Married Filing Separately $6300 (65 or older + $1250)
Married Filing Jointly $12,600 (65 or older + $1250@)
Head of Household $9300 (65 or older + $1550)
Thank you for your answer! "The Standard Deduction or Itemized Deductions are for personal deductions on schedule A. That is separate from your Business expenses on schedule C. There is no "Standard Deduction" for business. You enter your actual expenses. If you have self employment small business expenses you can take either the Standard Deduction or Itemized Deductions on the personal part of your return"
So if I decide the standard deduction is higher then my business expenses, should I still list the business expenses on the Schedule C. form?
You are not understanding. You get both. They are different things. You always list your business expenses. You get the business expenses no matter what. That is on schedule C for business
Then you also get to take your personal Standard Deduction OR Itemized Deductions (whichever is more) on schedule A. Itemized Deductions are things like Medical, Charity, Mortage Interest, Property Tax. Here is schedule A
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040sa.pdf">https://www.irs.gov/pub/irs-pdf/f1040sa.pdf</a>
Do you need to see schedule C
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040sc.pdf">https://www.irs.gov/pub/irs-pdf/f1040sc.pdf</a>
Thank you for your Help & Patience as I am very new to this! I am planning on filing an extension, and I have a figure after the $6300.00 Standard deduction, but I just need to know if the business expenses I will be listing on schedule C, should also be subtracted from that final figure thus lowering it even more!