Can we use Turbotax to file our taxes? I am self employed, file Schedule C, married joint. My partner works for a foreign government and does not pay SE tax.

[Carl]

Your reference to "my partner" changes things from what you may be expecting. You aren't just self-employed, but you have ownership in a partnership of some sort, unless you are married to that partner, file a joint return with that partner, and do NOT live in a community property state. It could be a partnership, multi-member LLC, S-Corp or C-Corp. It doesn't matter. The business will have to file a 1065 partnership return. (1120 if a C-Corp or 1120-S if an S-Corp). For this you will have to use TurboTax Business (different from Home & Business). TurboTax Business is not available as an online product, or for MACs. TurboTax Business is for the Windows platform ONLY.

In the process of completing the business return, the business will issue each owner a K-1 which shows that owner's business income and expenses for the tax year. Each owner that receives a K-1 will need that K-1 in order to complete their personal tax return. So the business return needs to be completed and filed first, before you can even start your personal return.

If aside from the partnership you have another business of which you, and you alone are the sole owner of, then you'll have to use Self-Employed to file a SCH C for that.

[mvigues]

I should have been more in clear in my question. By partner I mean, my husband and we file a joint return as a married couple. Your answer does not apply to this situation right?
My question still remains if we can file a join return since I do pay SE taxes on my 1094 income but my husband does not pay SE taxes at all as he works for an Embassy in the USA

[Carl]

Yes, so long as you are not in a community property state. Each of you will include a SCH C on your joint return for each one's ownership percentage of the business. The fact that one works for the embassy and their earned income is reported on a W-2 (I assume), doesn't change the taxability of the self-employment income.... unless there's something you're not telling us?
What is "1094 income?"  The only 1094 I'm aware of is the 1094-C which is used by employers for reporting ACA benefit information as it relates to the health care law. It's not used for reporting income to anyone or any taxable entity.
But overall, I find the 1065 just a simpler way to go, even for a married couple with joint ownership in a business.

[mvigues]

I meant to type 1099 , that's what I receive being a consultant for a direct marketing company. My husband does not get an W2 as an Embassy can not issue one. He does pay federal income taxes but not SE taxes on that income, so thats where the complicating factor comes in.

[Carl]

I don't see where there's any complication. Your husband is not self-employed at the Embassy. He is an employee and therefore his income earned at the Embassy is not subject to SE tax anyway. Am I missing something here maybe?