Filing jointly when one spouse owns a business

What type of business entity does he have?  A single member LLC that has NOT incorporated?  A S Corporation?  A C Corporation?  A multi-member LLC that files as a Partnership?

A Married Filing Joint tax return reports all income and deductions for both people listed on the return.  So, your husband's business income should have been included since you filed a joint return.

 

The question is whether his LLC is a sole-proprietorship or a different kind of business entity that is required to file its own tax return.  If it is a sole proprietorship, then it should have been included on the joint return by filing Schedule C for his business income and expenses.  If he file a separate business return, such as Form 1065 or Form 1120-S, then those tax returns would generate a K-1 reporting his personal share of the business income.  That K-1 should have been included as part of the joint return.  

 

Either way, your Married Filing Joint tax return will need to be amended to include your husband's business income, either by adding a Schedule C or a K-1 for his income.  

 

Or you could both choose to file Married Filing Separate tax returns to keep things separated.  Doing this will also require an amended return to be filed before the tax deadline of April 15.

 

@Kar1992 

Single member LLC not incorporated. It’s just him, no employees. 

You will need to amend your return to add a Schedule C for his business income and expenses.

 

If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines. 

 

• You must first wait until the initial return is completely processed.
• You will have to use the same TurboTax account that you used for the original tax return.
• Once you begin your amendment, you'll see your original return.
• The refund calculator will start new at $0 and only reflect the changes in the refund or tax due
• Only make changes to the areas of your return that need to be corrected.
• You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment

Select your product below and follow the instructions. 

Amend TurboTax Online 

Amend TurboTax CD/Download 

How is he filing his separately?  Is he filing a separate Business return or a 1040 personal return as Married filing Separately?  If he is not incorporated he files it on schedule C in your personal Joint return.  So you will have to amend the Joint return to add his Schedule C.   Was your Joint return Accepted?  Then if he files MFS his return will reject since he was already listed on the Joint return.  

Thank you very much, this helps a lot!! I read that I have up to 3 years from the return being filed to amend it. Is that true? Him and I also filed an extension before filing my return because we don’t have his business income for last year figured out yet and may take a lot more time. Does the extension still apply if I amend my tax return whenever we can get his income and deductions figured out? 

@AnnetteB6 

Yes you have 3 years to amend if you are getting a refund.  No time limit if you have a tax due but the tax due is still due by this  April 15, 2025.  So if you think you will owe you should pay some to the IRS online.  Did you actually file your Joint return?  Then the extension doesn't matter anymore.  

 

If he has a Net Profit on Schedule C he will owe about 15.3% Self Employment tax on it in addition to any regular income tax.  So I expect you will owe on the Amended return.