I have same situation, but although I understand what I need to do, I can not find ANYWHERE on the actual tax forms where the SE tax is adjusted to 100% to the person who runs the business.
IRS rules are explicit that in community property state Sole Proprietor business income is split 50/50 for income tax purposes (Sch. C).
But it's also explicit that nevertheless SE tax is paid 100% by the person who actually runs the business.
Problem is Sch SE takes the income directly from Sc. C, so after it's already been split 50/50. And there is no place which I can find on any form where either the income for SE tax purposes nor simply the SE tax itself are adjusted back to the person who should pay the 100% of it.
Sc SE simply cuclutaes it based on that 50/50 split and then passes the info to 1040. Period.
