Originally Posted by TheGoodLife:
Thanks Tom, just wondering- will a loss affect my taxes, if I don't have any business income for it to take from? I thought a loss only went against business income, to reduce what you claim for tax purposes?
If you showed a business loss of $500, this gets transferred onto your Form 1040. If you or your husband have other income that is reported on Form 1040, it will be reduced by $500, so you will save some federal and state income taxes. So, a business loss will reduce personal income.