@djlex2 wrote:
This now creates a new problem. My wife has an LLC that gets paid, and the LLC pays her via 1099 to her social security. Now that it ties her Business Income to her personal income, it has DOUBLED the gross income. That can't be right.
This is an entirely separate issue. If your wife has a single-member LLC, the LLC can't pay her. The LLC IS her. A single-member LLC is a "disregarded entity." It is not treated as a separate entity. Your wife and her single-member LLC are one and the same as far as income tax is concerned. Saying that the LLC pays her is saying that she takes money out of her pocket and puts it back in the same pocket. You wouldn't report that or issue a 1099 for it. The income that her LLC receives is her income.
You and your wife are trying too hard to separate personal income and business income, or, as you said, you are reading too much into the word "business." An individual person can have business income.
