2007-01-18 03:22:21 · 6 answers · asked by juicy 1 in Business & Finance ➔ Taxes ➔ United States
I'm guessing you are in business for yourself, called a Sole Proprietorship. You do not file such business income tax separate from your individual return.
File your individual tax return and attach Schedule C Profit and Loss from Business.
2007-01-18 03:44:55 · answer #1 · answered by ninasgramma 7 · 0⤊ 0⤋
If your business is set up as a sole proprietorship, then it has to be filed on Schedule C on your individual tax return.
If your business is set up as a "regular" corporation, then the business is a separate entity from you and a separate 1120 corporate return has to be filed. Nothing from the business would appear on your individual return, unless you were paying yourself a salary, or you paid out dividends from the corporation to yourself. Any income made by the corporation would be taxed at the corporate level.
If your business is set up as a "small" corporation, which is a tax concept (less than 35 shareholders), then the business has to file a 1120S tax return. The S-corp would not pay taxes on the income, but the income would "flow-through" to its shareholders and be reported on Schedule E of the individual's tax return.
If your business is set up as a partnership, then the business has to file a 1065 partnership tax return. The partnership would not pay taxes on the income, but the income would "flow-through" to its partners and be reported on Schedule E of the individual's tax return.
2007-01-18 11:50:04 · answer #2 · answered by jseah114 6 · 0⤊ 0⤋
If you are self employed, you will file them together. The business info will be on your Schedule C. The earnings from the Schedule C will be included on your Form 1040 along with your other non-business earnings and deductions. Your self employed income will also be needed to figure how much self employment tax (aks Social Security and medicare) you have to pay. Half of the employment tax is deductible from your taxable income. This can be a little tricky, but they have to be done together.
2007-01-18 11:42:47 · answer #3 · answered by Ovrtaxed 4 · 0⤊ 0⤋
Yes. Seek out a good tax specialist for both - she may be able to maximize both returns.
2007-01-18 11:33:55 · answer #4 · answered by MarauderX 4 · 0⤊ 0⤋
yes, and to do it the right way. file your business taxes first and then your personal ones.
only if your business is home based and makes minumum profics and lost, should they both be filed together
2007-01-18 11:30:45 · answer #5 · answered by lasalle_1986 4 · 0⤊ 1⤋
This has a whole hell of alot to do with how your company is set up. Is your business a legal entity?
2007-01-18 11:39:28 · answer #6 · answered by M O 6 · 0⤊ 0⤋