If I owe on student loans and I start my own business?

Yes. As far as student loan debt works, if you have money, you payback your loan before spending money on anything extra (aside from day-to-day living expenses).

When it comes to money and taxes what is yours is theirs.

it is possible

May be your parents will or can gift you some money to get your student loans paid off NOW ASAP at this time in your life. Because if you do NOT get them paid OFF in a timely manner they will start a collection process for the legal government debts such as student loans that are past due. You would be a self employed independent contractor with your own business operation and your ORDINARY and NECESSARY business expenses that you NEED to have GOOD detailed daily written records of for this purpose will HAVE to reported on each separate LINE of the schedule C of the 1040 tax form for this purpose and it is would be called your itemized business expenses if that is what you want to call the business expense. And here you go using the below information should help you get started for your first year as a self employed independent contractor and as you progress and your business starts to grow you may even need some good professional assistance with it for your future. Schedule C and the SE of the 1040 federal income tax return read each line when you start at the top of the page on the schedule C for your self employed independent contractor business operation your name is fine your social security number is fine and your present home address can all be used for this purpose just do NOT try to make it complicated and read each line and word and understand what it says and do what it says and then you should NOT have any problem. You can also find the line by line instructions for the schedule C by using the www.irs.gov website and using the search box for the schedule C 2010 Instructions for Schedule C (2010) 2010 Table of Contents Profit or Loss from Business http://www.irs.gov/instructions/i1040sc/%E2%80%A6 Specific Instructions http://www.irs.gov/instructions/i1040sc/%E2%80%A6 BUT GOOD detailed records are really necessary for your business operation to succeed. For your 1040 Federal income tax reporting you would use the below enclosed information for this purpose. Use the search box at www.irs.gov for Publications and Forms for the Self-Employed http://www.irs.gov/businesses/small/arti%E2%80%A6 All of your gross income from all sources of worldwide income will be reported on your correctly completed 1040 federal income tax return. Using a receipt book to make a receipt for each time that any one pays you in any way or item or trade for the amount of $$ value that is received at that time and totaling the gross self employed income for the tax year with any other 1099-MISC income that is received after the end of the tax year and entering the total gross $$$ value amount on the schedule C line 1 GROSS receipts from your trade or business In general, taxpayers may deduct the ordinary and necessary expenses for conducting a trade or business. An ordinary expense is an expense that is common and accepted in the taxpayer’s trade or business. A necessary expense is one that is appropriate for the business. Generally, an activity qualifies as a business if it is carried on with the reasonable expectation of earning a profit. You would have to be sure that you handle your business deductions correctly for your business operation. For instructions and forms go to the IRS.gov website and use the search box for publication 334 a very good place to start with examples. Publication 463 Travel, Entertainment, Gift, and Car Expenses Use the search box at the www.irs.gov website for Small Business and Self-Employed Tax Center Filing Season Central is your one stop assistance center for filing your business returns. This includes Highlights of Tax Law Changes, Tax Tips, and more. 2 of the seven tax tips for starting a business enclosed below. Go to the IRS gov website and use the search box for the below referenced material *Publication 4591, Small Business Federal Tax Responsibilities (PDF 470.1K) http://www.irs.gov/ http://access.wa.gov/business/taxes.aspx Hope that you find the above enclosed information useful for your situation and good luck to you. 07/08/2011