Keeping track of my business

you need to find a tax- accountant or attorney.
Tax deduct-able wages are from the taxes filed on the business, the wages will still be taxed on your personal return.
if you are planning to start your own business a lot of research/planning should take place to protect yourself.
Very good advice from VDART

I have a small hops farm 1/4 acre here at my house since I cannot work full time due to illness. I pay myself minus all the usual taxes. the gross salary is deductible along with equipment purchases/depreciation ie a tractor. anything put into the business is deductible. Power, heat, phone, internet, improvements, postage, advertising and insurance for a short list. If you claim a loss at the end of the year it comes off your personal income at the end of the year. Get a good local tax person that is familiar with the operation of a small business. It is well worth it and their fees are also deductible from the business! You do have to have a legal business though not just a hobby. A llc is fairly cheap to establish. Hope it helps.