Discussion:SE tax Husband and Spouse
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Discussion Forum Index --> Basic Tax Questions --> SE tax Husband and Spouse
Discussion Forum Index --> Tax Questions --> SE tax Husband and Spouse
| 8 October 2009 | |
| Taxpayer has Sch-C income ($1000) and Spouse has Sch-C loss ($15000). I’m not sure why for SE tax purposes these can’t be netted for an overall net loss? I keep thinking these need to be separated for SE tax purposes? Any suggestions or cites? | |
| 8 October 2009 | |
| I'm really surprised a tax pro would not know the SE earnings of two spouses can't be netted for purposes of calculating the SE tax. He owes SE tax on his $1000 and she owes no SE tax. Pretty basic stuff there. | |
| 8 October 2009 | |
| I remember reading that in a community prop state all Sch-C from a business could be reported on one form. I know they cant be netted due to separate FICA/SS purposes. thanks | |
| 8 October 2009 | |
| "I remember reading that in a community prop state all Sch-C from a business could be reported on one form. "
Only if there is one business owned by spouses can one Sch C be used - but still two SE's based upon percentage of participation by each. See RP 2002-69 and §1402(a)(5). | |
| 9 October 2009 | |
| Even in a community property state if husband and wife operate the same Schedule C business they have to file separate schedules SE | |
| 9 October 2009 | |
| The husband would not get a refund of FICA taxes paid if he was an employee. Why should self-employment income be treated differently. Community property laws are irrelevant here. | |
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