Question

If my husband and I own a business together (50/50) and I am filling out his half of his schedule C. Can I just enter all of our business deductions on his portion?

Forum|Forum|6 years ago
June 7, 2019
1 reply
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We pay for everything business related jointly so there is no real reason to split them on both.

TurboTax Self Employed Online

Employee

No, do not enter all the business deductions on his portion. Self-employment taxes (federal, state, social security, medicare) are calculated based on your net income. You would be understating his earned income and overstating your earned income.

Business Owned by Married Couple :

Normally two people who own a business need to file a partnership return. Since you're married you won't need to file a partnership return if you split your business income and expenses between you and report them as separate businesses.

This will be to your advantage when it comes to things like Social Security and certain deductions and credits.

Here's how you do it:

1. Split all of your business income and expenses according to your ownership percentages.

2. Select the ownership of this Schedule C to XXX.

3. Enter XXX's income and expenses on this Schedule C.

4. Create a new Schedule C for spouse (make sure the business description is different from XXX.

5. Enter spouse's income and expenses on the new Schedule C.

Related information:

What is the self-employment tax?

Social Security Disability Benefits https://www.ssa.gov/pubs/EN-05-10029.pdf