My itemized deductions are less than standard?

Question

I'm a sole proprietor and saved all of my write-offs this year and they are still less than what my standard deductio will be. So does that mean my write-offs (receipts) were basically were a waste? I don't get to write off my business expenses at all?

Answer 1

No, the expenses for your business have nothing to do with your standard or itemized deductions.

You'll show the business expenses on your schedule C and deduct them there.  Then when you get to your personal section of your return, if your PERSONAL itemized deductions (e.g. mortgage interest and real estate taxes on your personal residence) are not ove the limit to itemize, you'll take the standard deduction there.

Answer 2

Your business expenses go on Schedule C or C-EZ, not on Schedule A.  Business expenses are not subject to any limitations; you can always deduct the reasonable and necessary business expenses from your gross income.

Itemized deductions (on Schedule A) are totally separate from business expenses.  It's entirely possible to have significant business expenses claimed on Schedule C or C-EZ and still not be able to itemize.

Answer 3

Business expenses are not an itemized deduction.  If you are a sole proprietor, you can deduct business expenses on Schedule C as well as take the Standard Deduction on your 1040.

Keep the receipts.