Patrice, please jump in if I'm wrong. (I very well may be). If the business has it's own EIN, that EIN is tied to only one of your SSNs. The way to avoid this issue in the future so that you can split it without an issue, is to have the issuer of that K-1 issue it to the EIN and not the SSN. That will allow you to do the split then. That's because a K-1 is not specifically asked for working through the business section. If you'll note, in the "General Income" section it instructs you to enter income not reported on a 1099-MISC or 1099-G. It further instructs, "You can also use the fields below to enter income reported to you on form 1099-K" SO with that type of a 1099-K entry, if the 1099-K has the EIN instead of the SSN on it, you can split it (I would think) no questions asked, between the two SCH C's. I would expect this would not be a problem provided both SCH C's are included with the same joint tax return.
