When entering 1099 NEC or 1099 Misc the program asks if it is for me or my spouse. It is for our small business. Where is a 1099 for a small business entered?

[ToddL99]

Small business income from Form 1099-NEC (or 1099-MISC) is reported on Schedule C of Form 1040. The interview is located in the Self-Employment section of Income and Expenses (see the attached screenshot for navigation assistance). 

Enter "1099nec" in the Search Box of TurboTax Self-Employed (or Home and Business) and select "jump to 1099nec" from the results. 

When you get into the Self-employment interview, the "General Info" screen asks questions about the business. One of them is "Who does the work?". (See the attached screenshot for your options)

[beanhad5]

Thank you for your response. What does that mean - to split the business income and expenses? Do I have to enter everything twice, once for each spouse? 

[ColeenD3]

If you have a QJV, you would split the income and deductions 50/50.

Definition of a Qualified Joint Venture

A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership.

 A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company)

[beanhad5]

Thanks! We're not a QJV, we're a LLC. 

[MaryM428]

If you are a single member LLC, you can use TurboTax Online Self-Employed or Desktop Home and Business.  If you are a multiple member LLC, then you will file with TurboTax Business.  

For federal tax purposes, the IRS taxes a Multi-Member LLC like a Partnership. For this type of taxation, the Multi-Member LLC will file Form 1065 (“Partnership Return”) with the IRS. This is an informational return. Also, whoever prepares the taxes for the Multi-Member LLC will also issue K-1s to the LLC Members.

[xyzcharger]

Turbo Tax says to split joint (qualified joint venture) business income and expenses across a married couple and report as 2 separate businesses.  How do we handle a 1099-NEC that is sent to one of the married couple?  Do we simply split the amount?  

[ColeenD3]

If you can't get corrected 1099-NEC, one for each of you, one of you can create a 1099-NEC and charge off half the income to the other party. In the future, you should each receive one.

[xyzcharger]

avoiding the 1099-nec issue for this year (issuing a seperate one to my wife / appears I would need turbo tax business (im working from ttax deluxe) there seems to be nothing stopping me from just reporting the income(1099-NEC) and all expenses for both of us under me for this year.  Appears to be tax neutral and perhaps positive for the government form a SS persepective. I can report 50% of the business expenses under her with no income.  thanks 

[Critter-3]

Both of you must report 1/2 the income and the expenses ... simply skip the 1099 entry screen and enter the amount needed in the next section for each of you ...

[Carl]

 you are reporting business income/expenses on SCH C, then understand there can only be one owner of a such a business type, typically referred to as a single-member LLC or sole proprietorship.

If there are two owners of the business then you have a partnership or multi-member LLC. A partnership or multi-member LLC files it's own physically separate tax return, which is a 1065-Partnership return.

If you live in a community property state and;

- the business only has two owners and;

- both owners are married to each other and;

- are filing a joint tax return, then:

it's perfectly acceptable for the owners to split all income/expenses down the middle and each report their share of income/expenses on their own separate SCH C as a part of their 1040 joint tax return. So you'd be filing a personal 1040 tax return with two SCH C's included - one for each of you.

In this case, you just split the amounts reported on the 1099-NEC or 1099-MISC between the two SCH C's.