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Level 1

Should my wife and I, owners of a business where income is reported on individual 1099's, not business 1099's, show this income as half to each of us?

We have used turbo tax for years and have never had this problem arise before.

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Level 12

Should my wife and I, owners of a business where income is reported on individual 1099's, not business 1099's, show this income as half to each of us?

If you have filed one Schedule C on prior year returns, do the same this year. Designate all 1099-MISC to the same business without regard to the individual named on the 1099. Since both business owners appear on the tax return, the IRS will be able to match the forms to your return.

You would split the business activity into two Schedules C only if you had elected to be treated as a "Qualified Joint Venture."

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Level 12

Should my wife and I, owners of a business where income is reported on individual 1099's, not business 1099's, show this income as half to each of us?

If you have filed one Schedule C on prior year returns, do the same this year. Designate all 1099-MISC to the same business without regard to the individual named on the 1099. Since both business owners appear on the tax return, the IRS will be able to match the forms to your return.

You would split the business activity into two Schedules C only if you had elected to be treated as a "Qualified Joint Venture."

View solution in original post