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"A qualified joint venture is a joint venture involving the conduct of a trade or business, if (1) the only members of the joint venture are a husband and wife, (2) both spouses materially participate in the trade or business."

Given that, if a 1099-MISC is issued with the SSN of just one spouse, how is that recorded on the tax forms? Imagine for sake of the answer that it's a 60%/40% joint venture, and that 1099-MISC forms exist for both spouses.

Can TurboTax handle this? Will each spouse share the income (less expenses) for purposes of Social Security, Dependent Care Credit, etc?

http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Husband-and-Wife-Business

  • Who did the actual work? – littleadv Apr 16 '15 at 5:56
  • @littleadv both contributed to the work. – Bryce Apr 19 '15 at 17:01
  • So was the 1099 issued to only one person, or each got a 1099? I'm a bit confused by "1099-MISC forms exist for both spouses.". And why don't you use a partnership model? Get a EIN for partnership and get the 1099 issued to it. – littleadv Apr 19 '15 at 21:35
  • In future years a partnership EIN is a solution. Here consulting work was done, and there exist 1099's from various clients each with one or the other SSN on it. – Bryce Apr 20 '15 at 17:49
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    report it on the appropriate Schedule C, and if necessary - you can issue a 1099-MISC from one spouse to the other to balance. – littleadv Apr 21 '15 at 0:11

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