Filing income tax for a sole proprietorship help

Question

I own a small t shirt priniting business out of my home in NJ. fI am filing jointly w/my husband. What forms do I need??

BTW, I acutally lost money.

Answer 1

The IRS is on the look out for "Hobbies" as opposed to businesses,  The difference is that in a business you can deduct more items than from a hobby.  Losing money by itself is not indicative that yours is not a business.  If asked, what you need to demonstrate to them is basically a business model.  That is, what you are running has been run as a business before, that you are running it as a business, that you have the ability and expertise to do it and so on.  Profits are nice, but not necessary.

Any reasonable tax program or book will give you good guidelines.  Turbotax Pro is a good one.

Answer 2

You'll file a schedule C or C-EZ showing your income and any associated allowable expenses, and a schedule SE to calculate your self-employment tax, and a form 1040.  Your husband's income will go on the same 1040 if you file a joint return, which is almost surely the best way for you to go.

If your schedule C or C-EZ shows a loss, you won't need to use schedule SE

Answer 3

You would report those business activities on Schedule C which will calculate your profit or loss and carry that to line 12 of your 1040 form.  

By chance is that a Press-A-Print business?