If this is a joint venture, you have two options.
1. Treat it as a "qualified joint venture." You file two schedule Cs, one in the name of each spouse, each reporting half the income and half the expenses. The IRS may likely send (automated) mismatch letters if the income doesn't match the W-2Gs. In that case you would respond to the letters with a letter of your own and spreadsheets or other documents that prove you properly reported all the income, just not in the way the IRS computer expected.
2. Treat it as a partnership. You file a 1065 partnership return that reports all the income and expenses of the partnership, and issues a k-1 statement to each partner which is filed as part of the partner's 1040 tax return (or in your case, your married filing joint return would have a k-1 for each spouse, along with any W-2s, dependents, and personal deductions or credits.). If you go the partnership route, you need to create an EIN for the partnership and report your winnings under that number.
