Can spouse filing jointly claim my self-employed expenses?

[KEDDIDIT]

What is the name of your state? CA

My husband and I will file taxes jointly this year, as we will make about $35,000 joint income as we have also been doing charity work. We actually have been doing charity work for decades with low financial remuneration and thus have not had to pay income tax, so are new to this. In 2004, my husband has been on a W-2 as an employee, and since May I have been self-employed with just over $1000 gained from odd jobs which has gone onto required and necessary expenses on my own education and licences as an insurance agent/securities broker and on setting up my office. I will get my licences this year so that I can make a profit in 2005. I have kept receipts for all required education and also business expenses which exceed the $1000 I earned (my husband has been funding the difference.) So, having given that history, can we claim my business expenses and education for licences so that my husband can get some of the taxes back that he has paid? Or does he too have to have a self-employed status? Or is this too complicated and should we file seperately? Thanking you, KED

 

[abezon]

You file jointly. Your SE income & expenses go on schedule C; the net loss carries to the 1040 & reduces your income & tax. I strongly suggest you hire someone to do your taxes -- make sure it's someone with at least 2 years' experience doing schedule Cs. I also suggest you pony up the $300 for H&R Block's income tax course. You can write it off as a business expense on your 2005 return.

 

[KEDDIDIT]

Abezon, thanks for your clear answer and your help. All the best for 2005! KED