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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
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Experience:  Enrolled to Represent Taxpayers Before The IRS
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My wife & I are both retired and usually take standard deduction.

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My wife & I are both retired and usually take standard deduction. This year my wife earned over $40000 as consultant, with reimbursed and other expenses equaling about 27k. Now preparing to submit SE Sept. tax payment to feds. My question, can we treat this as a separate business with deductions while continuing to take standard deductions on our regular tax? This of course is critical in determining payment.
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
Hello and thank you for using Just Answer. Is your wife making SE payment with IRS Form 1040-ES? If not what IRS form is used to submit SE payments?
Customer: replied 8 years ago.
Yes, will be filing 1040-ES which is due 9/15. This will be first payment since she didn't start consulting until may-june 08.
Expert:  Marvin,EA replied 8 years ago.
You will treat your wife consultant income and expenses as a business and report the income and expenses on IRS Form Sch. C, Profit and Loss from Business (www.irs.gov/pub/irs-pdf/f1040sc.pdf). You will still be able to use the standard deduction when you file your Federal tax return.
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