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matrophy
New Member

Amend 2013 return to split schedule C so wife can get SS credit

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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Accepted Solutions
BMcCalpin
Level 13

Amend 2013 return to split schedule C so wife can get SS credit

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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2 Replies
BMcCalpin
Level 13

Amend 2013 return to split schedule C so wife can get SS credit

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]

matrophy
New Member

Amend 2013 return to split schedule C so wife can get SS credit

Thanks, I found a couple of expenses that weren't split in half so the tax due is now $75. The Schedule SE's line up exactly as do the Schedule C's in terms of comparing the sums of the 2 to the original. The big differences are depreciation, auto expanse and business use of the home that I left all on the forms in my name. It's only $75 now but if it's supposed to be $0, it's kind of sticking in my craw. I saw somewhere that someone suggested entering corresponding credits and debits to split the auto expenses in half and I'm wondering if that's kosher. I guess I'd add a line to income on one and to expenses on the other and so on.
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