will my business taxes affect my personal taxes

by Kevin O.
(East Orange)

i started a business and i have a tax id for the business. will this effect my personal taxes when i file with my wife.

Answer

Yes, assuming that you are using a pass-through entity like an LLC taxed as a partnership/sole-proprietor.

Your business income will be reported on your 1040 tax return you file with your wife, and will increase your taxable income.

If your business reported a loss for the year, then your business losses will reduce your taxable income.