Loss In First Year

[Orange2001]

Ok, I believe my husband and his accounting degree and my online reading of Tom's websit and this board we have this kinda figured out. But we are stuck here...
Profit was only about 7500 this year only worked last 5 months of the year
our expenses are less than standard 12K (for married filing joint) my business expenses are about 8k and personal expenses would be 2K so total 10K but this is still a loss in business right?? Ok yes I'm lost again help; these are ruff numbers not actual just example. Thanks.

[TomCopeland]

Loss

Ok, I believe my husband and his accounting degree and my online reading of Tom's websit and this board we have this kinda figured out. But we are stuck here...
Profit was only about 7500 this year only worked last 5 months of the year
our expenses are less than standard 12K (for married filing joint) my business expenses are about 8k and personal expenses would be 2K so total 10K but this is still a loss in business right?? Ok yes I'm lost again help; these are ruff numbers not actual just example. Thanks.

If your business made a profit (Schedule C, line 31), you'll owe Social Security/Medicare taxes on your profit. It's possible that you won't owe any federal income taxes depending on your personal deductions/exemptions. Your personal expenses have no impact on your business profit or loss. If your business shows a loss then you carry forward that loss to your joint From 1040 (line 12) where it will reduce any personal income for your family.