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Returning Member
posted Feb 19, 2023 11:02:36 PM

splitting 1099nec

I have an llc which is a sole propietorship and was issued a 1099nec.  TurboTax is recommending that I split the income between myself and my spouse.  But Turbotax imported the 1099nec information as a given number.  How to I split it to count as income for both married people?  

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3 Replies
Expert Alumni
Feb 20, 2023 5:40:45 AM

If you are filing a Schedule C for a business, and that business is jointly owned by you and your spouse, you can file two Schedule C's and split the profit (or loss) 

Why would you want to do this? 

Schedule C lists only one Taxpayer. If you want both Social Security accounts funded, you need to file two Schedule C's, one in each social security number. 

This can only be done with married couples. 

You would list half the amount as an expense on one Schedule C and then that same amount as income on the second Schedule C.

Information about Qualified Joint Ventures. 

 

If you are filing Separately in a Community Property state, you will each report half the community income on Form 8958.

Form 8958 is supported in TurboTax. 

New Member
Mar 30, 2024 3:17:16 PM

Do you happen to know if the same would apply for hobby income? I received a 1099NEC for a hobby that both me and wife participate in. Can/should I split that amount between both of us?

Expert Alumni
Apr 1, 2024 2:56:26 PM

A hobby is not a business, so it is reported as other income on your joint return. You would select that it was for 2023 only and not an intent to earn money.

 

 See Earning side income: Is it a hobby or a business?

@UncleJed