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jdb7785
New Member

I want to separate my personal taxes and my small business taxes since I recently got married. How do I remove the personal taxes from my current account for 2018?

And should I use a different Turbo tax product?
3 Replies
Carl
Level 15

I want to separate my personal taxes and my small business taxes since I recently got married. How do I remove the personal taxes from my current account for 2018?

If you have a sole proprietorship or single member LLC, then the IRS does not recognize your business income as being a separately taxable entity. It's a disregarded entity which is reported on SCH C as a physical part of your personal 1040 tax return. It flat out does not matter in any way, form or fashion if you will be filing MFS or MFJ. It's still "YOUR" business, and *ONLY* your business.
Do note that for a married couple to file separately will practically ALWAYS result in you paying more taxes.
pk
Level 13
Level 13

I want to separate my personal taxes and my small business taxes since I recently got married. How do I remove the personal taxes from my current account for 2018?

Agreeing with @Carl , if you are trying to keep the personal and business separate  because of Pre-Nup or because you live in a community state, federal tax filing status does not prejudice these -- they are separate. Even on the State filing there should not be any conflict between those ( pre-Nup and community & income tax filing )
Opus 17
Level 15

I want to separate my personal taxes and my small business taxes since I recently got married. How do I remove the personal taxes from my current account for 2018?

If you have a sole prop or single member LLC, the only way to keep your business separate from your personal taxes for 2018, is to file as married filing separately. You list your business on schedule C and your personal stuff on the rest of the 1040, like always.  Your personal and business taxes are combined as usual, but they are separate from your spouse's income.  Your spouse files a separate return for their income and deductions.  However, married filing separately often results in owing more taxes.

In Turbotax, for 2018 you could make a new online account, but you still have to keep your business and personal income on the same return.  If you will be filing jointly with your spouse, you should also consider making a separate account instead of adding your spouse to your existing account.  And if you will file married filing separately, your spouse will definitely need a separate account.

For the future, you could make an election to have your LLC taxed as an S-corp.  This can't be retroactive to Jan 1, 2018, so you must file as a schedule C disregarded entity.  You could make the election retroactive to Jan 1, 2019, if you file the election soon.  As an S-corp, you prepare a form 1065 corporation return, which issues a K-1 to the owners, and the K-1 goes on your personal return.  This requires purchase of a second Turbotax Business only program.  Making the S-corp election may have significant  consequences, especially regarding treatment of losses, and you should review your options with your accountant or tax professional first.

If you are trying to keep your money separate from your spouse in case of divorce or separation, simply filing as an S-corp may not do it.  You should see a lawyer or accountant.

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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