Will it be wrong? Technically, yes, since you are both owners of the business. Reporting it all on one form leaves you out of the loop.
- This means income earned from the business would be credited solely to your spouse, which adds to his Social Security Earnings table. You can increase your benefits as they take the top 35 years of income. If you plan on claiming half of his, it won't effect your table and could effect his.
- You would also lose the $400 exemption from Social Security and Medicare tax that you each get. Which is worth $61- since you don't see a difference, you may not have income for the business. The SE tax should be showing a difference if you did have income.
- You would be reporting all income and paying all federal tax either way
It is up to you how you file your taxes but I tend to err on the side of caution and complete accuracy.
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