Joint Sch C

[ILLMAS]

I have a client that would like to file their 2020 Sch C jointly (husband and wife business), do I have to split the amounts and report on each on a Sch-C or do I have to click on a box on ATX?

Thanks

[Slippery Pencil]

I think there use to be a joint checkbox, but not anymore.  You have to split on 2 Sch Cs.  I can't remember all the methods I've seen people say they've used.  Obviously one method is to put half of everything on 2 separate Cs.  One is to put 100% on one Sch C then enter an expense item for 1/2 the profit, either under subcontract or a miscellaneous expense or labor in COGS, then put that amount as the sales amount on the 2nd C.

[jklcpa]

If it's a qualified joint venture, then they split each item and report on 2 Sch Cs as long as it isn't an LLC or rental real estate. Basically, by doing this they are electing to not file as a partnership. Here's more information:

https://www.irs.gov/businesses/small-businesses-self-employed/election-for-married-couples-unincorporated-businesses#:~:text=A qualified joint venture is,be treated as a partnership.