David Posted October 14, 2014 Report Share Posted October 14, 2014 New clients each receive a 1099-MISC from the same MLM business with each one's appropriate ssn reported on the 1099. The 2012 tax return shows a Sch C with both their names reported and reporting 100% of all revenue and expenses. Their records report all expenses combined. I am trying to figure out how I can report the Sch C in ATX the same way the previous CPA did but I can't figure it out. Anyone know how to do this and how to handle the 1099s reported to each TP's ssn? Thanks. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted October 14, 2014 Report Share Posted October 14, 2014 You used to be able to just click a box on the top of the screen and it would do the division; assuming that it was equal. That has been gone for a long time. You can either give them each a schedule C and split the expenses or enter both 1099 Misc as they are reported. They "should" combine on the C. The only problem I foresee is the issue of two different SS. Quote Link to comment Share on other sites More sharing options...
jklcpa Posted October 14, 2014 Report Share Posted October 14, 2014 If they are truly running one business, they should be filing a partnership return, or they might be able to be a qualified joint venture and report on separate Sch Cs and Sch SEs: http://www.irs.gov/Help-&-Resources/Tools-&-FAQs/FAQs-for-Individuals/Frequently-Asked-Tax-Questions-&-Answers/Small-Business,-Self-Employed,-Other-Business/Entities/Entities 1 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted October 14, 2014 Report Share Posted October 14, 2014 Another page from IRS site: http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Husband-and-Wife-Business 1 Quote Link to comment Share on other sites More sharing options...
ADGFINANCIAL Posted October 15, 2014 Report Share Posted October 15, 2014 It still works that way in ProSeries but suggests a partnership in the help screen. Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted October 16, 2014 Report Share Posted October 16, 2014 Unfortunately, the IRS decided that Sch Cs cannot be joint. That would have been the simpler way to go: joint Sch C with 2 SE forms. They want you to split all income and expense items on two separate sch Cs. I don't have time for that, so I have the Sch C taxpayer issue a 1099MISC to the spouse taxpayer for roughly half the profits. The then spouse has a sch C with just income and no expenses. The only reason for all this rigmarole is for both spouses to get Social Security credit. Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted October 16, 2014 Report Share Posted October 16, 2014 Well, there are also some good 'legal' reasons as well. But yes, we used to have a box we could check for a 'joint' Sch C, and it did one C and two SEs, splitting the income between the two. No more. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted October 18, 2014 Report Share Posted October 18, 2014 That one was really only available in community property states. 1 Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted October 18, 2014 Report Share Posted October 18, 2014 Yes, but in practice, the IRS accepted them in non CP states, Had 3 that I used that box with, for years, and never a peep from the IRS. Quote Link to comment Share on other sites More sharing options...
joanmcq Posted October 18, 2014 Report Share Posted October 18, 2014 True. Quote Link to comment Share on other sites More sharing options...
mcb39 Posted October 18, 2014 Report Share Posted October 18, 2014 I don't get what the difference is. I have one H/W business that I have to prepare and charge for a 1065 and the business is so minimal it is not really worth it to them. Thankfully, it was already being done that way when they came to me; so they were used to paying for it. (much more than I charge); but it is a pain. The IRS gets the same amount of tax either way. I loved that "check the box" I am in a CPS. 1 Quote Link to comment Share on other sites More sharing options...
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