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Self Employment Tax for Spouse on MFS Community Property State

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Level 2

My client files MFS in a community property state. The income is split between each person but the SE tax does not get allocated and is only associated with the person whose business it is. When splitting the income, the SE calculation is auto completed. How can the amounts be overridden for the return that is not liable? Income was entered as Schedule C for both returns.

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Level 15
Level 15

Youd make adjustments for splitting the net profit on Line 21, other income.  Leave the SE form on the SE clients return.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Level 15
Level 15

Youd make adjustments for splitting the net profit on Line 21, other income.  Leave the SE form on the SE clients return.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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Level 15

Use the search box at the top of the left column and search for "Schedule SE" You can enter a negative adjustment there. 

If you are entering a Schedule C, there is a check box, almost to the bottom on the Business Information screen for Not subject to self-employment


ex-AllStar
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Level 15
Level 15

It was my understanding that you don't split the SE tax, only the income.


♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
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Level 2

That is correct. You only split the income and the tax stays with person that has the business.