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Sole-Proprietor LLC and hired my wife as an independent contractor
I am a sole proprietor of an LLC and hired my wife as an independent contractor for the last 6 months of 2021. I issued her a 1099-NEC based on the invoices and payments I made to her from the business. I itemized the amount as a contract labor expense on my business deductions in TurboTax. I also entered the 1099-NEC income on the personal income portion of our taxes as my wife's income.
I feel like my tax obligation seems higher than it should and am worried I'm getting double-dipped somewhere on the self-employment taxes.
Anyone know what I should be double checking and/or what can be done if my assumptions are correct?
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‎February 19, 2022
2:39 PM