Message Font: Serif | Sans-Serif
 
No. of Recommendations: 2
Sched C income is community income, just like wages. The only trick is that you'll have to override the SE calcs, as you need to hit the correct spouse for the SE tax on all of their income. That part is still separate. And the spouse picking up the 1/2 of Sch C income (the one that isn't self-employed) will also need an override to make sure they don't pay SE tax.

I'd guess that unemployment is also community income. And that the 401k withdrawal is not. But don't quote me on those.

Do you happen to use Lacerte? If so, I've found their tool to split a joint return into separate returns is pretty good. Just make sure that all of the income and deductions are properly coded as taxpayer, spouse, or joint.

--Peter
Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement