bullfrog916 asked:

i was thinking about starting a small pressure washing business on the side. still keeping my regular 9to5. how would this affect me? come tax time. i would do this to make extra money, but is it even worth it?

Larisa Responds: If you had a profit in your business, you would regular pay tax and self employment (an extra 15.3%) tax on the profit. If you had a loss in the business–meaning you spent more money than you made–it would decrease the amount you pay taxes on..which would help get a bigger refund or pay less taxes, which ever the case may be.

Last year (2008) I did some freelance video work and earned enough that I had to file as a  small business.  This year I only worked my full time job and did not do any freelance. Do I have to file my small business and say I earned $0 for 2008? The small business is a sole proprietorship.