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my husband and I file jointly and each have a schedule c I have a loss and he has a profit does my loss affect his profit?

7 Answers

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  • BBG
    Lv 7
    6 years ago

    Your loss does not affect his profit or self-employment tax as far as the schedule C and SE go.

    But your loss will offset some of his income as far as income tax goes (on your 1040).

    By the way, having a Schedule C loss that offsets other income can be a red flag for the IRS. It is a pretty common tax evasion technique. I'm not saying YOU are doing that...just be aware. The IRS does not take kindly to people who call their expensive hobbies "business losses" or who insist upon running a failing business year after year in order to reduce other taxable income.

  • 6 years ago

    Your gross income includes both his profit and your loss. You turn in both schedule Cs and sum the net income from both onto line 12 of the Form 1040.

  • 6 years ago

    He will still owe self employment tax on his profits.

    However, your loss will offset his profit when computing your total income for ordinary income tax.

  • tro
    Lv 7
    6 years ago

    in a way yes

    your report your loss on Sch C and he reports his profit on his Sch C, they are forwarded to the 1040 and will be the profit less the loss on the Business income line

    he sill pays his self employment tax on his profit on his Sch SE(none for you with a loss)

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  • Judy
    Lv 7
    6 years ago

    On a joint return, everything is netted together on form 1040 to calculate income tax and total tax. Each individual person's net is used to calculate their self employment tax though

  • 6 years ago

    Not for self employment tax. It will lower your income tax overall though.

  • Anonymous
    6 years ago

    There is no "his" and "hers" on a joint return. It's all "ours."

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