If Income From My Side Job Pushed Me Into A Higher Tax Bracket And I Had To Pay Federal Tax, Can I Deduct The Tax As A Business Expense?

From the point-of-view of federal income taxes in the US, it depends… Here are some situations that would mean you must file and may have to pay taxes: If your income from self-employment, you must file and pay Social Security and Medicare taxes If you had asset sales (e.g., stock sales), you may have to file to prove your actual capital gains, but you will not necessarily owe taxes If you received a subsidy to offset health insurance costs through the Marketplace, you must file to reconcile the payments against your income - again you may not have any payment, just a filing requirement If you had debt forgiven (student loan, credit card, home foreclosure, etc.), you may have “income” from a tax point-of-view without having any actual cash. This may mean you will owe taxes. If you received income in a way that incurs a tax penalty, such as taking funds out of an IRA before you were 59–1/2, you may owe early withdrawal penalty taxes. (There are also penalties for putting too much IN a tax-advantaged account in a year, including IRAs and HSAs.) If you had taxes withheld or are eligible for refundable tax credits, you may want to file to get your refund, but you are not required to do so. Remember, too, that the standard deduction only applies to Federal Income Taxes. You may still have an obligation to file income tax returns at the state or local level. Other taxes (e.g., property taxes) are outside the bounds of this question.

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