Takeo Ishii posted a new question on 11/6/2009
What tax impact does a DBA (assuming it still is not generating revenue) have if I am still full-time employed in a Corporate America job.
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Alice Nadin Responded on 11/7/2009
Hi Takeo,
If you have registered your business with the Federal and State governments and have your Federal Employee ID number and State Business Tax ID, then you will file a business tax return along with your personal tax returns. Any net business income (after business deductions) would then be added to your personal income as a line item as you complete your personal returns.
see for example the schedule C form for the Federal returns here:
http://www.irs.gov/pub/irs-pdf/f1040sc.pdf
Alice, SCORE Pittsburgh
Marina Martin Responded on 11/7/2009
Hi Takeo,
Your "DBA" (by which I assume you mean "sole proprietorship") income is considered as business income on your tax returns, and if there's enough of it, you can apply business expense deductions to that business income. Your normal job income (where taxes are already withheld and you receive a W2 each year) is considered as normal personal income, and is not taxed as business income (but you also cannot apply business expenses as deductions to this income).
Marina
