If our husband wife business receives a 1099 how should it be entered?

[aartrace]

Do i need to split the amount of the 1099 so we each get the appropriate percentage of it? TT asks if 'this 1099-MISC is for: myself or my husband' while I'm in my schedule C, but really the 1099 is made out to our business, not an individual.

[tagteam]

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@aartrace wrote:
Do i need to split the amount of the 1099 so we each get the appropriate percentage of it? 

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Yes, you can split the 1099 between the two of you in which case you will each file your own Schedule C and your status will be termed a "qualified joint venture". 

Please note that by following the above procedure, one of you cannot continue to use the EIN for the business (if you happen to have one); you each use your individual SSN.

I strongly suggest that you read through the following IRS topic:

https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorpo...

[MarilynG1]

You can split the income reported on the 1099-Misc between your two Schedule C's as appropriate.

You don't need to enter the actual form, although you could also enter two 1099-Misc's and report different amounts for each Schedule C if you prefer (as you mentioned). 

Click the link for a discussion on Splitting 1099-Misc Income on Two Schedule C's.

[aartrace]

My husband received a TIN some years ago, and it is on the 1099 in question (which has the recipient being our business name, and his name).  I'm afraid I don't entirely understand what you said about not continuing to use the EIN for the business.  I did read the IRS topic, but that didn't clear it up for me.  In what case should the TIN be used?  Should he have given his ss# to that payer instead?

[tagteam]

@aartrace You each file your own Schedule C with your SSN on the form.

The part of that link I was referring to is reproduced below.

What to Do if the Spouses Already Have an EIN for the Partnership

One spouse cannot continue to use that EIN for the qualified joint venture. The EIN must remain with the partnership (and be used by the partnership for any year in which the requirements of a qualified joint venture are not met). If you need EINs for the sole proprietorships, see above on EINs for sole proprietors.