Marriage , Health Insurance and Self Employment Taxes

[Poliepete]

I got married this year, and I have several questions regarding filing taxes and health insurance through ACA. She doesn't work and only earns rental income for a house we have both owned together. She also went back to school (online) this year to earn a master's degree. I am self-employed as a freelance writer, and earn between $50K and $70K per year.

1. Is it better to file jointly or separately?

2. I have had subsidized health insurance through ACA and she qualified for Medicaid. Would we now need to file as a household and change our insurance, even if we end up filing separately?

3. Bonus question: I currently file my taxes as self employed. Eventually, we'll both be self employed after she finishes her degree. Would it make sense to incorporate as a business. If so, what kind of incorporation would make the most sense? 

Thanks!

Peter

[Kelly Thomas C]

There is alot imbedded in your question. But I want to be as helpful as I can. So here are some general answers to your questions that might require some additional detail:

1) Best to file joint return.

2) No you don't need to change your health insurance.

3) It is generally a good idea to form a business (LLC, S Corp, C Corp) for a number of reasons. The only reason to NOT form a business would be cost to form and possibly costs to prepare and file a tax returns for certain business entities. The benefits most likely outweigh the costs. My personal opinion is operate your business a year or two (the "beta" years") while you prove up the business model, and then once you feel you have a viable business model and business, then you can step it up and form the business based on what you learned during your  beta years and grow the business to great sucess!!

I hope this is helpful to you.

Kelly C.

CPA