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I'm filling for my taxes on a joint tax return. My wife is not working currently, but she is starting up a business.

And with every business, starting is hard and will probably gonna take some time to earn the money. Business will probably lose money for some months.

My question is can I file losses from my wife's business on my taxes, since I am filing as a head of household?

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    Shouldn't you be filing married filing jointly or married filing separately? – mhoran_psprep Nov 25 '14 at 20:10
  • yes we are filling jointly – Gandalf StormCrow Nov 25 '14 at 20:30
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First, filing status. If you and your wife are legally married, you should be filing your tax returns as married, either jointly or separately. In the US, "head of household" has a specific meaning and is for unmarried people who are supporting one or more relatives, per the IRS.

If you are working full-time and your wife is not, then likely you will file a joint return, including all your income and all the expenses for your wife's business. So yes, the losses in her business will offset your income.

Depending on how complex things are, you may want to hire a professional to help with your taxes. The rules for what can and cannot be deducted as a business expense can be opaque.

  • thanks for the response. Yes we are legally married – Gandalf StormCrow Nov 25 '14 at 20:33

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