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New Member
posted Apr 13, 2021 10:11:13 AM

If you're married and one spouse has own business (s corp) and the other a w2, is it best file separate?

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4 Replies
Level 15
Apr 13, 2021 10:19:43 AM

It is almost always better to file jointly but you can try it both ways and compare. 

Level 15
Apr 13, 2021 10:20:01 AM

you would have to do the return both ways to see what the result is, but i can state this:  96% of married couples file joint! and that is because the tax laws motivate that behavior.    I suspect within that 96% are many, many married couples where one ones a business and one is W2.  

 

the other 4% - probably situations where two people are not getting along and a very few where it does make financial sense. 

Level 15
Apr 13, 2021 10:22:53 AM

And you are filing a separate Business 1120 S corp return for it?  You will get a K-1 or W2 from the S corp to enter into your personal tax return.  

Expert Alumni
Apr 13, 2021 10:24:08 AM

In almost all cases Married Filing Joint is best.  The S-Corp will have to file a return for that business but

 

The S-Corp will have to file a return for that business but your S-Corp income will flow through to your individual tax and TurboTax can handle this without any problems.

 

-follow this link for additional information-

Do Chapter Sub S Corps File Personal Tax ... - TurboTax