@setcel wrote:
Is it possible to file 2 schedule C if you are a sole proprietor filing married but separately?
We used to file married jointly for years under only 1 social security number.
We would like for tax return 2022 to file married but separately as we are separated.
Is it an option?
No. When 2 married people operate a business together, that is normally a partnership, but they can elect to file as a "qualified joint venture" using 2 schedule Cs. However, you must file a joint return to file as a qualified joint venture. If you want to file separately, you have to file the business as a partnership.
https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...
Alternatively, you can report the business as owned by 1 person who files a schedule C, and the other person is either an employee or a subcontractor. If subcontractor, the business owner would report all the income and expenses, and one item of expense would be the fee paid to the subcontractor. The business would issue a 1099-NEC to the subcontractor. The subcontractor would file a schedule C to report their income as a subcontractor.
To file as a partnership, you need to file form 1065 Partnership return. This will generate a K-1 statement for each partner that they include on their personal tax return. A K-1 "passes through" the partner's share of income and expenses to their personal form 1040. Form 1065 can only be prepared with Turbotax Business, this is a standalone business only program, not "Home & Business", and it is only available on PC, there is no Mac or online version. The deadline for form 1065 is March 15, not April, and the late fee is $195 per month per partner. You may be able to request a waiver if this is your first time with a penalty.
You may want professional assistance this year.
