If I was taking that home, I wouldn’t be working a second job!
Most small business owners are a sub-chapter S, and their business income goes straight to their personal tax return. Deductions are complicated and not as generous as you think.
I have a few micro-businesses probably smaller then yours. We have not done an LLC or Corporated yet. So all the income is transferred to the personal tax form. The real killer is the Self Employment tax, which applies before your personal itemized deductions. During the first couple of struggling years for me as a self employed individual I had to pay Self-Employment tax, but no income tax. The Federal tax code is an abomination. Should be scrapped completely. And if Obama things he can squeeze more out of me, he is a complete fool. I will just reinvest the gains back into the company and not even let Uncle Sam have a chance at them. My companies will remain fiscally solvent, while Uncle Sam of course remains fiscally insolvent.
I know how it works. I’m also a small business owner with an S corp.