My wife runs a farm, filed a schedule F. Do I also need to file SE for her income? Is there a way to link her name to the farm so that it is clear she is employed?

[lee-simply]

I cannot claim dependent care expenses because the program think she was unemployed... but she was running the farm.  But I don't want to double report income and expenses by filing both SE and F.  Please advise!

[IreneS · Accepted solution]

Yes, farming income is considered self-employment.  TurboTax will flow information from Schedule F to the Schedule SE automatically.  You don't need to do anything to create Schedule SE (it does not mean you are double-reporting her income).

Go back into the business section and check that you entered your wife as the owner of the farm.  To do this:

To link your wife's name to the farm, please follow these steps:

1. Click on Income and Expenses and then click the Start/Revisit box in the Self-Employment section.

2. On the screen, Your 2018 self-employed work summary, click Edit next to the farm.

3. On the next screen, click Edit next to General Info.

4. On the screen, Let's review your [XX] info, in the General Info section, under Who did this work?  make sure it says Spouse.  If it doesn't, click Edit to change.

This will show that the farm is your wife's business and yu should be able to calculate the Dependent Care Credit.

[lee-simply]

Thank you!  Yes, she is listed here.  However, This information did not populate the SE section.  It is asking for me to include all income and expenses again.  To be clear, you are saying this will not double report income and expenses?  I am surprised I need to reenter all this data.  I have already completed the schedule F with all expenses and income.

[IreneS]

That's correct, Schedule SE JUST calculates the SE income flowing in from other schedules (like C and F).  

The screen I think you're referring to in the Self-Employment Tax interview is asking you if you want to make income ADJUSTMENTS.  Click the"Continue" box, not "Make Adjustments."

To satisfy yourself that the farm income is not being double-counted, Preview the 1040 and look on line 18 of Schedule 1 of the 1040.  You should see only the amount from Schedule F.