Good evening , Do I file my small business taxes with my federal taxes , seeing that me and the wife are filing jointly ?

porchiawilliams — Thu, 06 Jun 2019 12:14:04 GMT

where do I put an owner draw on k-1? is it fully taxable...

wgfenwick — Thu, 06 Jun 2019 12:14:05 GMT

where do I put an owner draw on k-1? is it fully taxable as income subject to social security and medicare taxes?

It depends on what type of business you have and what sta...

AmandaR1 — Thu, 06 Jun 2019 12:14:07 GMT

It depends on what type of business you have and what state you live in.

When you start working for yourself and never form a separate business with a state, you're considered self-employed for taxes. The business income and expenses are reported on a schedule C, with the net amount flowing to the personal return (you can use TurboTax Self-employed). When 2 or more people start a business, they are considered a partnership (you'd need TurboTax Business and the business needs to file first/separate).

The IRS has a special election for married spouses (being the only partners in a business) that allows them to split their business interest on two schedule Cs. This allows them to keep things simple, while still getting credit for social security and ownership of the business. However, they can't have formed a business with a state (including LLCs), but there's one exception to this rule (see below). See more on this at the IRS HERE.

LLC businesses are disregarded for taxes, so there's no form they need to file. If your business is a single owner LLC, with you as the only owner, your business defaults to be taxed as a self-employed business. If your business is a LLC with multi-members, it will default to be taxed as a partnership and need to file a separate business form 1065, giving you a schedule K-1 to report your share of the business on your personal return.

If you and your spouse are partners in a LLC, you'd have to file a partnership return, unless you live in a community property state. In a community property state, you can use the married election to report your business on two schedule Cs, explained above, even though you formed a LLC.

Let me know if you have any follow up questions.

topic It depends on what type of business you have and what sta... in Get your taxes done using TurboTax

Good evening , Do I file my small business taxes with my federal taxes , seeing that me and the wife are filing jointly ?

where do I put an owner draw on k-1? is it fully taxable...

It depends on what type of business you have and what sta...