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Self employment tax for MFJ

Forum|Forum|3 years ago
April 6, 2023
2 replies
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I have a clients where the taxpayer has a Schedule C business loss and the spouse has a ministers housing allowance. I expected to see the loss and the housing allowance amounts to partially offset for self employment tax, but the SE form is only picking up the positive housing allowance. Is that correct, and if so, why would they not partially offset each other?

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Best answer by TaxGuyBill

SE Tax is an individual thing. That is why there are two Schedule SEs.

So no, the loss from one spouse's business would not alter the SE tax from the other spouse.

TaxGuyBillAnswer

Level 15

SE Tax is an individual thing. That is why there are two Schedule SEs.

So no, the loss from one spouse's business would not alter the SE tax from the other spouse.

Level 13

SE tax is individual, even in CP states. So one spouse cannot offset the other spouse.

Edit: That's what happens when I get a text while typing this. Ninja'd by TGB. So, uh, what he said.

Level 15

@rbynaker wrote:

Edit: That's what happens when I get a text while typing this. Ninja'd by TGB. So, uh, what he said.