@tgad1000 wrote:
It is follow up question? how do I pay social security tax when I receive a 1099 form from my wife? How can I do that on Turbo Tax? please elaborate.
Let's go back.
It might be appropriate for you to be an employee and receive a W-2 (in which case, your wife's business has some extra responsibilities, unless she already has other employees). It could also be appropriate to be considered an independent contractor (consultant/self-employed). It depends on the nature of the business relationship, and how the work was controlled. Although, the IRS won't dispute either way and will only get involved if the employee or contractor complains they were mis-classified.
https://www.irs.gov/businesses/small-businesses-self-employed/independent-contractor-self-employed-o...
If you are treated as an independent contractor, your wife issues a 1099-NEC if she paid you more than $600.
You file a schedule C with your tax return listing yourself as a business. You can do this even if you are also a W-2 employee of someone else. Your wife may also be filing a schedule C depending on how her business is organized, this is also perfectly fine to have more than one schedule C, just be sure that you put the income and expenses for each business on the correct schedule C.
You will list your gross income, your expenses, and pay self-employment tax and income tax on your net profit. Self-employment tax is the self-employed person version of social security and medicare tax.
