If your wife has earnings from
self-employment of $400 or more, she must file a tax return and pay
self-employment tax (the employer's and employee's share of Social Security and
Medicare taxes) on that income. This can be done by including her income on a Married Filing Jointly tax return with you or by filing a Married Filing Separately return.
In most cases it is better for a married
couple to choose Married Filing Jointly filing status, even if one spouse had
little or no income. This allows you the possibility of claiming several tax
credits that are disallowed to Married Filing Separately filers. In addition,
you benefit from the higher $12,600 Standard Deduction and both (your and your
wife's) $4,050 Personal Exemptions.
