1099 for unincorporated business

[albrad]

Hello, 

My wife and I work for an unincorporated business (not LLC) and we file our taxes jointly. She works with companies that send her 1099s in only her name but we elect to be treated as a qualified joint venture. I know as a QJV, we have to have split incomes and deductions (we use 50-50). Should I just enter all the income as "Other" without entering the 1099s so that I can split it between the two - generating two schedule Cs? How do you suggest this is entered into turbotax? 

Thanks in advance. 

[RogerD1]

Since you will each be filing your own schedule C forms, the best strategy would be to enter 1/2 of the 1099 forms under each of your names.  The full amount of the 1099 income will then be showing up your return, with 1/2 equally allocated to both of you.  Since you are doing a 50/50 split, the important thing is to make sure all items of income and expenses match on each of your Schedule C forms.

[albrad]

Thanks so much for your reply. Just to clarify, would I just place the 1/2 under “other income” on each of our schedule Cs? Or do I actually have to submit the 1099 into TurboTax then edit it.

[DawnC]

You should enter each 1099 on both Schedule Cs - but half of each.    So, if you have a 1099-NEC from Company XYZ with $1500, you would enter a form on your Schedule C  for $750 and another on your spouse's Schedule C for $750.    

For any amounts you don't have a tax form for, you can do one entry for half on each return in the Other Income field.   You should only use that form for income not reported on another form.