r/tax•
Sad-Yak7685

What’s the deal with excess business losses against w2 income?

So I work a few 1099 jobs part time in addition to my normal day job. I get absolutely screwed in tax at my full time job, for reference I’m at 38k for the year and I’ve already paid 11,000 in federal taxes alone. So last year when I filed I realized I can write off losses from my 1099 against my W2. I do solar surveys and use a very fuel efficient car where with the mileage deduction I always write off more then I earn in a day doing the jobs. So my question is, is there a limitation to how much negative I can deduct? Is this normal to do every year as im being honest with the IRS, and is that maximum PER 1099? So say I “lose” $10,000 at job A, then I “lose” $12,000 with a different 1099 contract, do they both come off of my w2 income?

Posted May 4, 2025, 4:42 PM UTC

136
Loading comments…