You can file using TurboTax Home and Business. You will file your Joint Form 1040 and a Schedule C for her business will be part of it.
TurboTax is pretty easy and straight forward to follow and enter your Schedule C business information.
IRS Schedule C, Profit or Loss from Business, is a tax form you file with your Form 1040 to report income and expenses for your business. The resulting profit or loss is typically considered self-employment income.
You'll need to file a Schedule C if you earn income through self-employment as a sole proprietor or as a single-member Limited Liability Company (LLC).
Before you start gather all of your tax forms and the forms related to her business. It's important to keep track of expenses for her business because you will be deducting them on her Schedule C.
For business expenses to be deductible, they need to be both “ordinary” and “necessary.” The IRS considers an expense to be ordinary if it is common and accepted in your industry. For an expense to be considered necessary for your business, it must be one that is helpful and appropriate for your trade or business. An expense doesn't have to be indispensable to be considered necessary.
What info is on a Schedule C?
Schedule C asks for several items related to your trade or business. Some of the items include:
- Business name and address
- Principal product, service, or profession offered by your business
- Accounting method used for your business (cash, accrual, or other)
- Whether or not you have materially participated in the business
- If you started or acquired the business during the current tax year
- Detailed reporting of your income
- Itemized reporting of your business expenses, including items like advertising, insurance, legal and professional services; rent or lease payments, repairs and maintenance expenses, utilities, wages, and more
- Information about cost of goods sold used in your business (if applicable)
- Details about vehicles used in your business (if applicable)
- Other expenses not easily categorized by the fields provided within the form
Click here for "What is a Schedule C?"
Click here for information on reporting self-employment income and deductions.
Click here for IRS instructions for Form Schedule C.
Click here for a description of Business Expenses, IRS Pub 535.
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