Do I divide Sch. C inventory and how - married filing separately

[AmyC]

Dave is right. When you go through your state return,  it will ask questions since you are MFS in a community property state. During the questions, you will report the incomes for each of you and the program will handle it. You will need to give your wife the net income for her to use half on her return.

[Alik]

When you do the state return?
But that's only done after the federal is complete.

[AmyC]

I am sorry! No, Dave is correct that your federal sch C is all under your name. You deserve the Social Security credit for working.  Once you get done with your federal return and you go into the state, then it will ask you to start dividing up and filling in information.