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How do we file this 1099-MISC?

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Gidget2000

Junior Member
What is the name of your state (only U.S. law)? PA

My husband and I joined a network marketing business last year. We are 50/50 partners on the position. The residual and commission checks payed to us contained both my spouse's name and my name. But they issued the 1099-MISC in my husband's name only. How do we file our married, filing jointly income tax return so we both receive our share of social security/Medicare credits?
 


LdiJ

Senior Member
What is the name of your state (only U.S. law)? PA

My husband and I joined a network marketing business last year. We are 50/50 partners on the position. The residual and commission checks payed to us contained both my spouse's name and my name. But they issued the 1099-MISC in my husband's name only. How do we file our married, filing jointly income tax return so we both receive our share of social security/Medicare credits?
You each file a schedule C dividing the income and expenses between you.
 

FlyingRon

Senior Member
The 1099-MISC means SQUAT really. All it determines is that the company that paid you gave you money that the IRS wants accountability for. It may not result in **ANY** net income for tax or social security purposes.

As Ldij indicates it starts with the schedule C. If you filing jointly, you can treat this as a "Qualified Joint Venture" (see the schedule C instructions).

Then what REALLY matters is that you each report your net self-employment income on your own Schedule SE and that determines your SE tax obligation and what is used by the SSA to compute quarters, etc... for eventual benefits.
 

HRZ

Senior Member
As an aside, often the convoluted social engineering in SS does NOT yield the best payout later on based on 50/50 and absent a crystal ball it may be hard to sort out a good split..if the facts allow same. But the system was built around a single breadwinner logic and in many cases the math favors attributing all income to one or as much as your facts allow ...of course by tine you think you have it figured out the rules may change or the careers change
 

LdiJ

Senior Member
As an aside, often the convoluted social engineering in SS does NOT yield the best payout later on based on 50/50 and absent a crystal ball it may be hard to sort out a good split..if the facts allow same. But the system was built around a single breadwinner logic and in many cases the math favors attributing all income to one or as much as your facts allow ...of course by tine you think you have it figured out the rules may change or the careers change
That is complete nonsense. There is no guarantee that the OP and their spouse will be married long enough for the eventual payout of SS benefits to matter. Its quite sensible that if they operate the business 50/50 that they each take 50/50 of the income and expenses...therefore earning equal SS credits.
 

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