Question

We file jointly, but we file separate Schedule C forms for our separate businesses. If I put her business in my name, TurboTax decides we get a bigger refund. Why?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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Since we file jointly, why would we get a bigger refund if I own both of our businesses instead of her owning hers and me owning mine? All the income and deductions remain the same in the two schedule C's.

TurboTax Business Windows

O

Opus 17

Employee

If your total income (from W-2s and schedule C) is more than $118,500 per person, your self-employment tax goes down. But don't cheat this one, since you will be penalized if caught, and because if you don't report earned income for your spouse, they won't get retirement credits, and your eligibility for tax-deferred retirement contributions, the dependent care credit, and other benefits may be affected.

M

mjkamerickAuthor

I think what actually happened was that my wife wouldn't have to pay any SE tax if I owned both businesses, but your suggestion was still helpful, though we our total income did not exceed the amount you mentioned.