DianeW777
Expert Alumni

Self employed

No, you cannot combine them based on how the residual income was set up at the time of the sale.  I am assuming this was set up to be paid to each of you equally based on the agreement entered into.  The best way to remedy that is to have a new or update to the agreement where only your wife is paid the residual income with payments continuing for you after her departure. This would required the purchaser to issue the 1099-NEC in only the name of the payee in the future.

 

There could be other alternatives, however you would need to speak to an attorney about the best way to go about it.  For 2023, you will need to file both Schedule Cs, one for each of you.

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