Wife and I are self employed but I also have full time W2 job.

mngu116 · ‎May 31, 2019

My wife is a full time self employed photographer with her own business LLC. I am a part time real estate agent (independent contractor) in addition to having a full time job with W2 income. She has income but many expenses due to first starting up her business last year and will operate at a loss. I just started being a real estate agent and have no income for last year but many startup expenses for licensing and schooling. I also have a full time W2 job that I will pay many taxes to. My question is what is the best way to file for us (currently thinking married filing jointly)? What is the best way for us to claim these deductions for our self employment losses? Will they be able to be taken out of my W2 job taxes?

AmyT · ‎May 31, 2019

Married filing jointly is almost alway the best option, tax-wise, for a married couple.

There is no specific amount of gross income (money coming in) or profit that you must meet in order for your expenses to be deductible. Additionally, the business losses will reduce your overall income and taxable income, which will most likely increase any refunds (or reduce any taxes) you would have had otherwise without the losses.

Important note: You are only able to deduct your expenses in the year that you paid them - you cannot save them for a future year.

You will want to file a schedule C (Self-employed profit and loss) for each business.

To get to the input screens for your business:

Once signed into your account, click on Search at the top of the screen
Input "schedule c" into the search box and hit Enter
The first link available should be Jump to schedule c - click on this link
You will be taken to the screens to enter your income, business information, and expenses

When you come to the input screen for your income, simply do not enter anything. Work through the other screens that come up (business information, etc.) and then you will be able to enter your expenses.

You will be able to add a second business after you have completed the first one.

View solution in original post

AmyT · ‎May 31, 2019

Married filing jointly is almost alway the best option, tax-wise, for a married couple.

There is no specific amount of gross income (money coming in) or profit that you must meet in order for your expenses to be deductible. Additionally, the business losses will reduce your overall income and taxable income, which will most likely increase any refunds (or reduce any taxes) you would have had otherwise without the losses.

Important note: You are only able to deduct your expenses in the year that you paid them - you cannot save them for a future year.

You will want to file a schedule C (Self-employed profit and loss) for each business.

To get to the input screens for your business:

Once signed into your account, click on Search at the top of the screen
Input "schedule c" into the search box and hit Enter
The first link available should be Jump to schedule c - click on this link
You will be taken to the screens to enter your income, business information, and expenses

When you come to the input screen for your income, simply do not enter anything. Work through the other screens that come up (business information, etc.) and then you will be able to enter your expenses.

You will be able to add a second business after you have completed the first one.

0313dj · ‎May 31, 2019

Which version of TurboTax should be used for this situation?

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Wife and I are self employed but I also have full time W2 job.