Vanessa A
Expert Alumni

Get your taxes done using TurboTax

How is the business formed?  Are you an LLC or S-Corp or do you just file a Schedule C?  Which version of TurboTax do you use?  Was this intentional that you claimed all the income and she did not? Are you in a community property state?  Which state do you live in?

 

The first name or primary name on a return, does not determine who gets the credit for SS and Medicare. 

 

If your wife and you are 50/50 partners in a business, you should be splitting the income in some manner. If you both file a Schedule C reporting half of your business income, you both will be paying into Social Security and Medicare.  

 

If you have a partnership LLC you would file a 1065, and then you would both get a K-1 (depending on the state you live in) and you would again both pay SS and Medicare taxes on the income from the business that you each claim.  

 

You can split profit and loss anyway you want.  You can do it 25% to her and 75% to you, or 50/50 or 75% to her and 25% to you.  There isn't a specific number that you must use.  

 

The Maximum withholding for 2023 was $160, 200 so if your business is making more than that, and only one person is claiming all the income, then neither of you are getting credit for SS or Medicare for any amount over that, so splitting it would give you both some. 

 

So you will need to make changes to the income allocation, not the primary name on the return. 

 

Qualified Joint Venture

 

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