I just started a very small personal business. I’m reading online that when I file taxes I can file a standard deduction? And that as a married couple it has to be about $25,000. Problem is I have literally no idea what this means. Does it mean I have to spend $25,000 in business expenses in a year? Please help!!! And please, really dumb this down for me 🙂
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From one small private practice owner to another, please consult with a tax professional. I did my own taxes for years but now pay an accountant do them. Self-employment income can get tricky, and based on your question, you are not experienced enough to be doing your own taxes. Depending on the size and scope of your practice, there are deductions that could push you beyond a standard deduction. And I’ll second the recommendation to form an LLC. Good luck with the private practice!
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