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Question about Schedule C and Filing Jointly?

My husband and I are getting ready to do our taxes. We usually file a joint return. Last year I started a home business and need to report the money I made from the business. Can I file a Schedule C with just my business information with our joint return or do we need to file separately now.

7 Answers

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  • 1 decade ago
    Favorite Answer

    Never file married filing separatly unless you are in a very specific situation involving huge debts incurred by your spouse. You will have to report you schedulce C earnings on your joint return before figuring your AGI. The return looks at household income, not individual income. So you won't have any problems, except it may lower your return or increase your payment due as the case may be.

    Be sure you have records for ALL your expenses. Ideally, you would like to carry a loss as you can use this to adjust your tax liability for three years. This 'loophole' is there to help fledgling businesses like yours.

    You may want to consider getting your taxes done professionally, as home based businesses are a red flag for audits. Plus a CPA can guide you into the best tax advantage and it tends to discourage the IRS from picking on you. I'm a tax preparer and I still have a CPA do my business taxes.

    Good luck with your business.

  • Jo Blo
    Lv 6
    1 decade ago

    You can file a Schedule C or maybe even a CEZ and still file jointly. The information from Schedule c or CEZ goes on line 12 of Form 1040

    You will also need to file a Schedule SE if you made more than $400. profit, and if you did, don't forget to put 1/2 of your self-employment tax from Schedule SE on line 27 of Form 1040 as a deduction from income.

  • 1 decade ago

    Schedule C can be used with your 1040 while filing jointly. I am in a similar situation and have done it. Turbo Tax supports this option.

  • 1 decade ago

    Yes, you file your Schedule C with your joint return. On the Schedule C, only your name and SSN appears, not that of your spouse.

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  • Judy
    Lv 7
    1 decade ago

    You can file jointly, including all of your income including the business income.

  • 1 decade ago

    You can still file jointly. Being self-employed doesn't affect that.

  • kelsaw
    Lv 4
    5 years ago

    by definition a sole proprietor does no longer have a earnings. They stay or die by the internet earnings. As for you, sure, she would be able to deduct your wages--did she provide you a W-2 and withheld fica/mc/futa wisely?

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