I have seen this topic asked several times, but never truly answered effectively. My husband and I are filing as a qualified joint venture in a community property state. We have several small 1099-misc and one very large 1099-misc. The small ones are under my spouses SS# and the large one is under mine. I want to split and show the same income for both of us, but I don't know exactly how/where to report the income and split it properly. Can someone give me specifics.
I've been told so many different things. I don't know if I should
1) Disregard the 1099's and report as General Income
2) Enter the 1099-misc on both schedule Cs with 1/2 the amount for each
3) Enter the large 1099-misc on mine and then deduct the appropriate amount to create half and enter that on his (if so, where do I deduct it out, and where do I enter it on his?)
The concern I have with # 3 is that it might look like we are getting more money in than we really are. We have to be very careful not to look like we are bringing in more money an then just expensing out, because we are filing for College Financial Aid and other benefits also. Some benefits programs add certain Schedule C expenses back in when they calculate assistance.
