1040 Schedule C with Multiple Family Accounts

[onefootflipper]

My wife and I both have an ebay account. They generated a 1099 for her account despite being under the state threshold. We have long since stopped selling anything on her account but I still have that 1099 that they shouldn't have even generated to deal with.

Do I need to fill out a separate 1040 Schedule C for each of us or can I combine the income onto a single one? 

[katzrul15 · Accepted solution]

@onefootflipper 

Yes, you do.  One for each of the sole-proprietorships that you have.  Use her SSN for hers and your SSN for yours.

[coolections]

Easy answer. Are you doing your taxes as married filing separately, or are you filing as married filing jointly ? The answer is in the question.

[caryacollectables]

SO WHAT IS THE ANSWER?  yes or no?

[caryacollectables]

My wife and I both sell on ebay.   My wife sells as a hobby, I sell full time.  She has never had to receive  1099 because she never sold enough but this year since the $600 threshold, she will now  get a 1099.  Because the 1099 includes shipping charges (an expense item) it will be all income unless she too can file a schedule C and enter deductions (shipping charges, ebay fees, etc).  QUESTION: Can an a couple filing jointly have TWO schedule C's (one for each) in a joint tax return?

[lepke1979]

If you got separate 1099s. Then yeah, do it separately. Don't combine.

[luckythewinner]

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@onefootflipper wrote:

My wife and I both have an ebay account. They generated a 1099 for her account despite being under the state threshold. We have long since stopped selling anything on her account but I still have that 1099 that they shouldn't have even generated to deal with.

Do I need to fill out a separate 1040 Schedule C for each of us or can I combine the income onto a single one? 

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The 1099-K threshold is applied to a social security number, not to an eBay account.

If the same social security number is used for multiple accounts, eBay will total up all the income from all of those accounts and then apply the threshold to the total. If the total exceeds the 1099-K threshold, eBay will issue a 1099-K for each account. 

Is your wife's eBay account under her own SSN, or under yours?

[lepke1979]

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@caryacollectables wrote:

My wife and I both sell on ebay.   My wife sells as a hobby, I sell full time.  She has never had to receive  1099 because she never sold enough but this year since the $600 threshold, she will now  get a 1099.  Because the 1099 includes shipping charges (an expense item) it will be all income unless she too can file a schedule C and enter deductions (shipping charges, ebay fees, etc).  QUESTION: Can an a couple filing jointly have TWO schedule C's (one for each) in a joint tax return?

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Yes. Can have as many as are needed.

For instance, I sell here and some other places. And she mostly sells on Etsy. I'll have a schedule C for my thing and one for hers. And mostly pick and choose what expenses to apply to hers or mine. And she'll share in the home office. So instead of my office being 800 sqft, I might take 600. And she takes the rest.

Shoot, one year we both had schedule C's for selling. A Schedule C for her mobile grooming business. And Schedule C's for Postmates/Doordash. Good thing I find bookkeeping fun.

[onefootflipper]

This is an old thread. I finished my taxes months ago.