topic Trouble Splitting Married Business Income due to 1099-MISC in Business & farm https://ttlc.intuit.com/community/business-taxes/discussion/trouble-splitting-married-business-income-due-to-1099-misc/01/1183973#M40391 <P>My wife and I own a side therapy business that generates income two separate ways: Seeing clients under our own company name and also seeing clients as a contractor under another person's larger, more established business. We have an LLC and we know that is a disregarded entity as we are wholly owned by the two of us.</P><P>&nbsp;</P><P>TurboTax is telling us on our Schedule C we should split the profits and losses 50/50 and make two separate businesses. (Community Property State) But, a majority of our income is from a 1099-MISC and we can't split that in two.&nbsp;</P><P>&nbsp;</P><P>If I don't claim the 1099-MISC, I can happily split the profits and losses 50/50 where it all works out in the end. But then I'm not claiming a 1099-MISC, which the IRS is looking for me to claim it. How do I tell the IRS-'Hey we are owning up to our 1099-MISC income without attaching the 1099-MISC? It can't be cut into two.' I know that not claiming a 1099-MISC is a red flag for audits, and I just don't want to wait until the auditor shows up, ruins our lives for a few months as we show the 1099-MISC was split in two under the business's profits.</P><P>&nbsp;</P><P>Thanks</P> Wed, 19 Feb 2020 03:29:06 GMT AnonymousFamilyBusiness 2020-02-19T03:29:06Z Trouble Splitting Married Business Income due to 1099-MISC https://ttlc.intuit.com/community/business-taxes/discussion/trouble-splitting-married-business-income-due-to-1099-misc/01/1183973#M40391 <P>My wife and I own a side therapy business that generates income two separate ways: Seeing clients under our own company name and also seeing clients as a contractor under another person's larger, more established business. We have an LLC and we know that is a disregarded entity as we are wholly owned by the two of us.</P><P>&nbsp;</P><P>TurboTax is telling us on our Schedule C we should split the profits and losses 50/50 and make two separate businesses. (Community Property State) But, a majority of our income is from a 1099-MISC and we can't split that in two.&nbsp;</P><P>&nbsp;</P><P>If I don't claim the 1099-MISC, I can happily split the profits and losses 50/50 where it all works out in the end. But then I'm not claiming a 1099-MISC, which the IRS is looking for me to claim it. How do I tell the IRS-'Hey we are owning up to our 1099-MISC income without attaching the 1099-MISC? It can't be cut into two.' I know that not claiming a 1099-MISC is a red flag for audits, and I just don't want to wait until the auditor shows up, ruins our lives for a few months as we show the 1099-MISC was split in two under the business's profits.</P><P>&nbsp;</P><P>Thanks</P> Wed, 19 Feb 2020 03:29:06 GMT https://ttlc.intuit.com/community/business-taxes/discussion/trouble-splitting-married-business-income-due-to-1099-misc/01/1183973#M40391 AnonymousFamilyBusiness 2020-02-19T03:29:06Z Re: Trouble Splitting Married Business Income due to 1099-MISC https://ttlc.intuit.com/community/business-taxes/discussion/re-trouble-splitting-married-business-income-due-to-1099-misc/01/1184121#M40393 <P>You have two choices.</P> <P>1. Enter the 1099-MISC&nbsp;on one Schedule C and report 50% as contract labor. Enter that 50% as income on the other Schedule C</P> <P>2. Enter the 1099-MISC&nbsp;as if it were two separate forms. Split the box amounts in half and enter one into each Schedule C.&nbsp;</P> <P>The reason you're filing two Schedule C's is not because you are in a community property state, it's so your individual Social Security Accounts are each funded.&nbsp;</P> <P>The only time you need to worry about splitting income when living in a community property state is when you are filing Married Filing Separately.&nbsp;</P> Wed, 19 Feb 2020 03:51:06 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-trouble-splitting-married-business-income-due-to-1099-misc/01/1184121#M40393 KrisD15 2020-02-19T03:51:06Z Re: Trouble Splitting Married Business Income due to 1099-MISC https://ttlc.intuit.com/community/business-taxes/discussion/re-trouble-splitting-married-business-income-due-to-1099-misc/01/1184451#M40403 <P>Thank you for your advice, I really appreciate it.&nbsp;</P> Wed, 19 Feb 2020 05:11:30 GMT https://ttlc.intuit.com/community/business-taxes/discussion/re-trouble-splitting-married-business-income-due-to-1099-misc/01/1184451#M40403 AnonymousFamilyBusiness 2020-02-19T05:11:30Z
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topic Trouble Splitting Married Business Income due to 1099-MISC in Business & farm
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https://ttlc.intuit.com/community/business-taxes/discussion/trouble-splitting-married-business-income-due-to-1099-misc/01/1183973#M40391
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<P>My wife and I own a side therapy business that generates income two separate ways: Seeing clients under our own company name and also seeing clients as a contractor under another person's larger, more established business. We have an LLC and we know that is a disregarded entity as we are wholly owned by the two of us.</P><P>&nbsp;</P><P>TurboTax is telling us on our Schedule C we should split the profits and losses 50/50 and make two separate businesses. (Community Property State) But, a majority of our income is from a 1099-MISC and we can't split that in two.&nbsp;</P><P>&nbsp;</P><P>If I don't claim the 1099-MISC, I can happily split the profits and losses 50/50 where it all works out in the end. But then I'm not claiming a 1099-MISC, which the IRS is looking for me to claim it. How do I tell the IRS-'Hey we are owning up to our 1099-MISC income without attaching the 1099-MISC? It can't be cut into two.' I know that not claiming a 1099-MISC is a red flag for audits, and I just don't want to wait until the auditor shows up, ruins our lives for a few months as we show the 1099-MISC was split in two under the business's profits.</P><P>&nbsp;</P><P>Thanks</P>
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Trouble Splitting Married Business Income due to 1099-MISC
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<P>My wife and I own a side therapy business that generates income two separate ways: Seeing clients under our own company name and also seeing clients as a contractor under another person's larger, more established business. We have an LLC and we know that is a disregarded entity as we are wholly owned by the two of us.</P><P>&nbsp;</P><P>TurboTax is telling us on our Schedule C we should split the profits and losses 50/50 and make two separate businesses. (Community Property State) But, a majority of our income is from a 1099-MISC and we can't split that in two.&nbsp;</P><P>&nbsp;</P><P>If I don't claim the 1099-MISC, I can happily split the profits and losses 50/50 where it all works out in the end. But then I'm not claiming a 1099-MISC, which the IRS is looking for me to claim it. How do I tell the IRS-'Hey we are owning up to our 1099-MISC income without attaching the 1099-MISC? It can't be cut into two.' I know that not claiming a 1099-MISC is a red flag for audits, and I just don't want to wait until the auditor shows up, ruins our lives for a few months as we show the 1099-MISC was split in two under the business's profits.</P><P>&nbsp;</P><P>Thanks</P>
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Re: Trouble Splitting Married Business Income due to 1099-MISC
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<P>You have two choices.</P> <P>1. Enter the 1099-MISC&nbsp;on one Schedule C and report 50% as contract labor. Enter that 50% as income on the other Schedule C</P> <P>2. Enter the 1099-MISC&nbsp;as if it were two separate forms. Split the box amounts in half and enter one into each Schedule C.&nbsp;</P> <P>The reason you're filing two Schedule C's is not because you are in a community property state, it's so your individual Social Security Accounts are each funded.&nbsp;</P> <P>The only time you need to worry about splitting income when living in a community property state is when you are filing Married Filing Separately.&nbsp;</P>
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<pubDate>Wed, 19 Feb 2020 03:51:06 GMT</pubDate>
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Re: Trouble Splitting Married Business Income due to 1099-MISC
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https://ttlc.intuit.com/community/business-taxes/discussion/re-trouble-splitting-married-business-income-due-to-1099-misc/01/1184451#M40403
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<P>Thank you for your advice, I really appreciate it.&nbsp;</P>
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<pubDate>Wed, 19 Feb 2020 05:11:30 GMT</pubDate>
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