Objective:
How can the wife pay me so we can file jointly?
Situation:
The wife and I work together. We live in Texas which is consider a community property state. We are working under a LLC which the wife and I created and we are the only members on it.
We use “Square” as our merchant processor. They only give out one 1099-K and it’s under the wife social. We never updated to the business EIN. (1) Should we updated her social on square to the business ein for the following years like that it is easier to split the income?
I never thought it was going to be this complicated but how can we file taxes together? We have always filed joint except this this year we started to work together.
I have read that we can use separate schedule C and divide up the percentages. This seems like it’s the only likely option from what I have read. Her schedule C would have her social and it also has the ein that refers back to the business ein which is under the wife name.
If I were to create my schedule c using my social. (2) Would I use the business ein on my schedule C?
Just as an example the wife could put she paid me xxx.xx/percent cash under the contract labor expense on her schedule C, even though we were working together as husband and wife. I didn't think at the time a 1099nec would have been necessary since it was husband and wife. (3) Would I report the cash received under my schedule C part I Income: 1a (Enter other gross receipts or sales not reported on a 1099nec…). received and put the business ein which is under the wife name?
My assumption of this is if my wife pays cash contract labor expense (me) using her business ein and on my schedule C it sees receiving cash from business by putting business ein it would equal out? Like I mention an assumption.
Any advice would greatly be greatly appreciated I am not sure on how to proceed or any other advice. Thank you for your time.
This is what I have been reading.
https://www.irs.gov/businesses/small-businesses-self-employed/married-couples-in-business
https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...
