I would be interested in who told you that and what they based it on. I personally am not familiar with any “Tax Credit” for home based sole proprietorships. You may have deductible expenses that, for the first year or so, add up to show a negative income (loss) to decrease your other taxable income, but to come up with solid, predictable amount with the information you have provided in your question is not possible. My advice: keep good records of your income and expense (related to the business) and consult a professional tax preparer versed in small business tax issues. This does not mean that you need to spend big money on a CPA, just ask around because word of mouth is the best bet. I also suggest you find and consult with someone prior to the end of this tax year.