We were unaware that my wife who is a partner in our sole proprietor business wasn't receiving SS credit so I am amending our 2013 return to split the Schedule C in half so she can receive credit.
I did not split the 'business use of auto' deductions'or the home office deduction and kept both of those on my schedule C untouched.
After I split the income and expenses for the business, the return now shows that we owe around $500. I wonder if this is to be expected and/or if splitting the auto and home office deduction will lower the tax due.
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Ordinarily, splitting the one Schedule C into two should not change the final result, unless you hit a "boundary condition".
That is, by splitting the two Schedule Cs, you cause one of them to go negative or you made some unexpected change to Schedule SE (the self-employment taxes owed on your net Schedule C income).
The first thing to check is "Is the sum of the net income of the two Schedule Cs the same as the original C? If not, why?"
Next, I would examine Schedule SE (you should now have two of them). Is the sum of the two Schedule SEs the same as the original Schedule SE? If this changes, it will reduce your sole proprietor SE tax deduction on Schedule 1 of the 1040.
The total income on the two Schedule Cs ought to be the same as the original, as well as the total expenses. Something else changed, and you'll have to run it down.
[Edited 3/19/2020 2:14 pm CDT - updated form reference]
Ordinarily, splitting the one Schedule C into two should not change the final result, unless you hit a "boundary condition".
That is, by splitting the two Schedule Cs, you cause one of them to go negative or you made some unexpected change to Schedule SE (the self-employment taxes owed on your net Schedule C income).
The first thing to check is "Is the sum of the net income of the two Schedule Cs the same as the original C? If not, why?"
Next, I would examine Schedule SE (you should now have two of them). Is the sum of the two Schedule SEs the same as the original Schedule SE? If this changes, it will reduce your sole proprietor SE tax deduction on Schedule 1 of the 1040.
The total income on the two Schedule Cs ought to be the same as the original, as well as the total expenses. Something else changed, and you'll have to run it down.
[Edited 3/19/2020 2:14 pm CDT - updated form reference]
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