The Tax Professionals Blog — K-1
Child-Care Credit, Split Schedule C
Posted by Lee Reams Sr. on
When both spouses in a married couple are involved in the operation of an unincorporated business, it is fairly common– but incorrect – for all of that business’s income to be reported on one spouse’s Schedule C. In this case, the spouse not filing a Schedule C loses out on the chance to accumulate his or her own eligibility for Social Security benefits. In addition, to claim a child-care credit, both spouses on a joint return must have earned income (or imputed income if one of the spouses is a full-time student or is disabled), so unless the non-Schedule C spouse has another source of earned income, the couple will not be allowed a child-care credit.IRD Income and the Frequently Overlooked Estate Tax Deduction
Posted by Lee Reams Sr. on
When a client comes in with a 1099R or Schedule K-1 with income from an inherited individual retirement account (IRA), ask two very important questions