I have a small Schedule C business. I'm going to divide the work
and the income with a partner, whom I might be married to by 2024.
I receive a 1099NEC for the work.
If we're not married, can I just issue her a 1099 and deduct that
on my Schedule C? And then of course she would report it as
income. Is that the best way?
If we're married, do I just file two Schedule C's, one for her,
one for me? It might seem to not matter but I would like the
social security credits to attach to her; they do me no good.
Roger Fitzsimmons <dontspamme@redtopbg.com> wrote:
I have a small Schedule C business. I'm going to divide the work
and the income with a partner, whom I might be married to by 2024.
I receive a 1099NEC for the work.
If we're not married, can I just issue her a 1099 and deduct that
on my Schedule C? And then of course she would report it as
income. Is that the best way?
That's one approach. If you do that, you both will be subject to self- employment tax in addition to regular income tax.
If we're married, do I just file two Schedule C's, one for her,
one for me? It might seem to not matter but I would like the
social security credits to attach to her; they do me no good.
If you're married you can file two Schedules C but only if you live in
a community property state. Otherwise you need to file a partnership
tax return. You could also set up an S-corporation, and potentially
save some of the self-employment tax.
Stuart O. Bronstein wrote:
Roger Fitzsimmons <dontspamme@redtopbg.com> wrote:
I have a small Schedule C business. I'm going to divide the
work and the income with a partner, whom I might be married to
by 2024.
I receive a 1099NEC for the work.
If we're not married, can I just issue her a 1099 and deduct
that on my Schedule C? And then of course she would report it
as income. Is that the best way?
That's one approach. If you do that, you both will be subject to
self- employment tax in addition to regular income tax.
Can you suggest other approaches?
If we're married, do I just file two Schedule C's, one for her,
one for me? It might seem to not matter but I would like the
social security credits to attach to her; they do me no good.
If you're married you can file two Schedules C but only if you
live in a community property state. Otherwise you need to file a
partnership tax return. You could also set up an S-corporation,
and potentially save some of the self-employment tax.
Taxed and Spent <nospam...@nonospam.com> wrote:
Stuart O. Bronstein wrote:
Roger Fitzsimmons <donts...@redtopbg.com> wrote:
I have a small Schedule C business. I'm going to divide the
work and the income with a partner, whom I might be married to
by 2024.
I receive a 1099NEC for the work.
If we're not married, can I just issue her a 1099 and deduct
that on my Schedule C? And then of course she would report it
as income. Is that the best way?
That's one approach. If you do that, you both will be subject to
self- employment tax in addition to regular income tax.
Can you suggest other approaches?They could be taxed as a partnership or an S-corporation. They could
also set up a C-corporation, but that's not likely to be helpful to
them.
If we're married, do I just file two Schedule C's, one for her,
one for me? It might seem to not matter but I would like the
social security credits to attach to her; they do me no good.
If you're married you can file two Schedules C but only if you
live in a community property state. Otherwise you need to file a
partnership tax return. You could also set up an S-corporation,
and potentially save some of the self-employment tax.
--
Stu
http://DownToEarthLawyer.com
--
This email has been checked for viruses by AVG antivirus software. www.avg.com
On Tuesday, February 28, 2023 at 8:58:14 PM UTC-5, Stuart O.
Bronstein wrote:
Taxed and Spent <nospam...@nonospam.com> wrote:
Stuart O. Bronstein wrote:They could be taxed as a partnership or an S-corporation. They
Roger Fitzsimmons <donts...@redtopbg.com> wrote:
I have a small Schedule C business. I'm going to divide the
work and the income with a partner, whom I might be married
to by 2024.
I receive a 1099NEC for the work.
If we're not married, can I just issue her a 1099 and deduct
that on my Schedule C? And then of course she would report it
as income. Is that the best way?
That's one approach. If you do that, you both will be subject
to self- employment tax in addition to regular income tax.
Can you suggest other approaches?
could also set up a C-corporation, but that's not likely to be
helpful to them.
If we're married, do I just file two Schedule C's, one for
her, one for me? It might seem to not matter but I would like
the social security credits to attach to her; they do me no
good.
If you're married you can file two Schedules C but only if you
live in a community property state. Otherwise you need to file
a partnership tax return. You could also set up an
S-corporation, and potentially save some of the
self-employment tax.
I am assuming that the total self-employment tax won't change. My
earned income is way under $160K, so every dollar of income
transferred to her will trigger 15.3% self-employment tax on her,
but reduce the self-employement tax on me dollar for dollar.
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