what happens if you make a certain amount of money for the year and then you add up your expenses and it comes out to be way higher than what you made?
2007-04-06 18:28:11 · 3 answers · asked by ~_~ 2 in Business & Finance ➔ Taxes ➔ United States
If you mean that you have a business and your business expenses are more than your business income, that happens and for that year, your business shows a tax loss.
If you're an employee and you're talking your personal expenses, then you could have a personal financial problem, but it won't affect your taxes. If you have more itemized deductions than income, you won't get any tax benefit from some of the deductions.
In either case, if it's just one year, might not be a problem, but if this continues year after year, you need to take a serious look at finances.
2007-04-10 03:16:02 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
Your expenses must be deductable. You can't make $50K a year and spend $100k for that year with credit cards and not have to pay taxes. Better to read the Tax book or see a CPA.
2007-04-07 01:33:21 · answer #2 · answered by dealerschool2006 3 · 0⤊ 0⤋
if you are talking about a business,, sounds like you won't be paying tax on that income,, you would have a loss
if you are talking about money coming in vs money going out just in general,, you are not alone...
2007-04-07 01:35:38 · answer #3 · answered by Jo Blo 6 · 0⤊ 0⤋