Married couple with 2 schedule C’s for self employment. Loss on one of them.?

Russ Kiernan: 2009 Schedule Se

Len Bormes: How are you on predicted tax funds and preserving precise archives? If i became your better 0.5 and also you had problem with both one, i'd favor to record MFS (married filing one at a time). there is not any way as a newlywed that i'd favor to marry into your ability tax debt and audit topics. i'm no longer confident the position your question is coming from, for sure you declare you earnings no matter if you're married or no longer. Do you've children? you ought to be in for a marvel once you record next time. EIC is determined by your mixed earnings in case you record MFJ (and if both you're making plenty, then you definately get no EIC) and would not even exist in case you record MFS....Show more

Alphonso Brake: You will use only your net income from the your Sch. C to determine your self-employment tax on your Sch. SE. Since Sch. C income is for a sole-proprietor, the net income is just as if you had earned the ! income elsewhere. So if she does not have a net profit of at least $400 she will not have to file a Sch. SE, and a loss will only offset the total income on the tax return for federal income tax purposes, not for self-employment tax purposes.Laura H â€" H&R Block â€" Senior Tax Advisor 5 **This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided....Show more

Lindsey Zanardi: You're correct, you'll fill out separate SE's for each of you, for social security and medicare. Losses on her schedule C wouldn't affect your schedule SE.

Cassey Hollinghurst: You are correct.For self-employment tax only, each person's tax is separately calculated, even if they filing jointly. Your Schedule SE must be based solely on your income, and her loss cannot be used to reduce the self-employment tax on your profit.[However, for income tax, if you filing jointly, the profits or losses are c! ombined, and your loss will reduce the overall income tax (jus! t not the self-employment tax). On the business income line of Form 1040, enter the amount of profit from your Schedule C minus the amount of loss from her Schedule C.]...Show more