1) How do we tell the IRS we are a QJV?
You have to go into forms mode and select the QJV box that way. Then switch back to the step-by-step mode. Note that if you are using the online version of TurboTax, then forms mode is flat out not possible.
2) We currently file Schedule E's for each property, Do we need to submit Schedule SE (if we don't file Schedule C) for each one of us to get Social Security Credit? If so, is the rental income to be reported on line 2? My spouse will have 2 Schedule SEs (one as a landlord and the other as his other duties)?
No. Rental income is passive and therefore not subject to the Self-Employment tax. Additionally, your passive rental income does not count for figuring your maximum contribution allowed to a tax deferred retirement account, or a ROTH retirement account. It also doesn't count for social security or Medicare.
3) Are we considered passive even though we manage our own rentals and only need to file Schedule Es?
If you are not a real estate professional then yes, absolutely. But if you are an RE pro, then it depends on other factors that I won't cover here under the assumption that you are not an RE professional.
