Yes, your wife is required to report the extra compensation on your joint tax return. You will enter the extra compensation of $900 as other income that is not subject to self-employment tax.
To enter the $900 sign in to your TurboTax account if it is not open and follow these steps:
- Select Income & Expenses.
- Scroll down to Less common income and select show more.
- Scroll to the line Miscellaneous Income, 1099-A, 1099-C, and check start.
- On the page Let's Work on Any Miscellaneous Income scroll to the line Other reportable income and click start.
- On the page Any Other Taxable Income select yes.
- On the page, Other Taxable Income enter the description (Extra Compensation) and amount.
- Select continue.
- Select done on the next page
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