Hey y’all, how does tax season go for you? I’m actually new to this. What are the indicators of a large return? Also if my business barely had any sales but lots of expenses what should I expect?

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Be sure you are claiming EVERY legal expense you can, that includes mileage (one of my biggest hidden expenses). I also travel for my business from time to time. When I do I make the effort to go out of the way at my end destination to do something, visit a similar business and talk to the owner/manager about business ideas or other options. For example, I’m a firearms trainer and I live in Michigan. I’m from Texas originally and travelled to see my grandmother in San Antonio. During our stay, I took her and my boys to a local gun range near her house so she could try a few different self-defense firearms I have. Also while there, I took a few videos and did a quick video review of the range for my FB page. That made the trip there and back a business trip so I was able to deduct the mileage (only direct miles are deductible, not incidental or “vacation miles while away from your tax home on business”).

Also, there is a limit to how many years you can claim a loss on your Schedule C business so be careful of that as well.

I will say that having a small (more like micro in-home) business has helped bring my tax liability down a bit. We just opened an axe throwing range in our town the end of 2022, so this will be a new one for us and will likely send our tax burden to the dark side now. Still, there’s NOTHING like owning your own business that you built from the ground up!

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As a business owner you are only going to get a refund if you overpaid on your estimated taxes. It sounds like your expenses may have been more than your sales. If that’s the case you probably do not owe anything because you have no profit.

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Sounds good, thank you!

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