My wife runs a craft business selling at the local farmer's market. Gross sales were less than $3000. Expenses most likely exceeded that (+/-). Sales tax was collected and remitted to the state/local. Can the the business income/expenses be reported through personal taxes (i.e., Turbotax Deluxe) or would it need to be done via Turbotax Home & Business edition? Thanks!
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If she has business expenses to report, she'll need TurboTax Self-Employed.
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.
Thank you Maya!
If she has ordinary expenses as MayaD described, then she will need to put them on Schedule C. So be sure the Turbo Tax Version you purchase include Schedule C. If her expense exceeds her income, it will reduce your taxes.
Thank you clm-sat! I appreciate the reply!
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