Originally Posted by legomom922:
Ok, well this is what I was wondering, since I have never done this before. So if I understand correctly, I claim my 11,400 standard deduction as usual, AND my business expenses but on another form.
My concern was that since I ususally always always have to claim the standard deduction, I would see NO benefit from claiming my business expenses. Just like when everyone kept telling me when I bought my house how it would help me with taxes, but it didn't...It provided no benefit to me tax wise anway.
In the past, lets say DH made $50,000, and I made $0, and we claimed the standard deduction, we would get back appx $4000.
Now this yr, DH makes $50,000 and I make $5000, and claim my buisness expenses along with teh standard deduction, should I still expect to get back the same amount? Or will it be appx more??
Whatever expenses you had in 2010 will be deducted from the $5000. The remainder of that amount will be taxed, meaning you will have to pay tax on it. From my understanding (this is my first year too) it will be taxed around 20-25%...someone feel free to correct me if I'm wrong.