Hi and welcome to Just Answer!His partnership is a separated legal entity - and it does file its own tax return. However the partnership doesn't pay income taxes. Instead - all tax liability is passed to partners - that is why it is called a pass through entity.So - each partner receives K1 which indicated his/her share of taxable income. That income must be reported on individual tax return. If you file a joint tax return with your spouse - you both are liable for any tax liability resulted from that tax return. So while you are not liable for the partnership - you still liable of the portion of your spouse's income reported on K1. So you might want to be sure that K1 is issued correctly, timely - and that information is included into your joint tax return.
S corporations are corporations that elect to pass corporate income, losses, deductions and credit through to their shareholders for federal tax purposes. In this prospective - S-corporation is similar to the partnership.However generally - you woudl be an employee of your S-corporation - and will receive wages reported on W2 form. So you will have two types of reporting - W2 for wages and K1 as a shareholder of the S-corporation.There would not be difference in deducting business expenses - deductions woudl be essentially the same regardless of what type of entity you choose - but these deductions woudl be reported on different tax returns.Still - you will file your individual tax return jointly with your spouse - and will include all typed of income you both have - K1 from your spouse's partnership, W2 from your S-corporation, K1 from your S-corporation, and any other types of income either of you might have.