Question

How do I file taxes if I work for my husband, who is a sole proprietor?

Forum|Forum|3 years ago
January 10, 2023
1 reply
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Do I pay myself with business checks and I file my own Schedule C?

TurboTax Online

If you are an employee of his company, you will need to issue yourself a Form W-2 and withhold payroll taxes. This will show on his Schedule C as an expense.

Please see this link for more information.

https://ttlc.intuit.com/turbotax-support/en-us/help-article/form-1099/employee-independent-contractor/L2nQIgKF5_US_en_US

CatinaT1

It depends.

Are you an employee or contractor for your husband? If you earn wages or income from your husband's business, then what he pays you from the business is an expense to his business.

If he is paying you as an employee, he would have a wage expense and withholding tax expense for the taxes he is withholding. He would issue you a W2, which you would then file with your return. How you stated your questions makes me think you are not being paid as an employee.

If he pays you as a contractor and writes you a check or gives you cash for the work you have performed, you are then self-employed as well. He would have contractor labor expenses in the amount he paid you on his Schedule C.

You would then file your own Schedule C, reporting all income and expenses for your business. If he paid you more than $600 in the tax year, he would be required to issue you a 1099-NEC.

Below are a couple of links that might be useful to you.

About Schedule C

Self Employed Individuals Tax Center

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J

jfgduraAuthor

Hi Catina,

Thank you for your response. My husband has an auto repair shop and I am the office manager. I do all the bookkeeping, financial and administrative work. It is part time, and I have not taken any compensation in 8 years because I had other part time jobs as well. But now I don't and I am concerned about continuing to build my social security earnings.

I think I would be classified as either a contractor or it could be a qualified joint venture. To be an "employee" sounds like a lot of extra work and extra taxes.