We are married filing separately. Can I file a schedule C for my husband's self-employment which I funded?

[DS30 · Accepted solution]

It depends. Schedule C is for reporting the income and expense of the business. If this self-employment business is his alone, then regardless of if you funded the business, only he will report the income or loss.

Please note that if you live in a Community Property State (Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin), you may need to include some of his income on your return but you will not include that income on a Schedule C (instead, you will have an adjusting entry on line 21).

[juliewrose]

We are in Washington.  He is the primary employee  of the business but I also help with marketing etc., so it is a joint business.  So if I adjust for his income on my tax return, can I include the expenses for the business as long as he does not on his separate, tax return, or should we split the expenses?

[DS30]

No, you will only be able to include the adjustment for net income from the business on your tax return.