Question by andietom: Can I separate home business taxes from my regualar job taxes?
I have started a party type home business. I also have a regular job w/taxes being held out. Can I file my income taxes on my regular job and then file separate taxes for my business? If so, do I need a business tax id #?
Answer by Steve D
Assuming you are operating as a sole proprietorship, you should file both incomes together. However, if you are a sole proprietorship, the income flows through to you as regular income and you will need to pay Social Security taxes on the income, unless you are over the income limit on your day job. Don’t forget you may be able to take deductions for office space used in your home for the business as well as deduct certain expenses (travel, supplies, etc.). If the business is successful, you probably need to hire an accountant.
Give your answer to this question below!