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When you are speaking about income tax liability, if you are married and file a joint return, both spouses are liable for the tax on their joint income regardless of who actually earned the income.
The issues are on the business return, which does not have her name on it.
The business is a partnership, which income passes to the 1040 correct?
Publication 501 states the following about joint returns "Both of you may be held responsible, jointly and individually, for the tax and any interest or penalty due on your joint return. One spouse may be held responsible for all the tax due even if all the income was earned by the other spouse"
The business income is earned by you, and therefore taxable on your joint return. Unless you filed separately your wife would be jointly responsible for the income.
tax on the business profits
Got it. she is not the partner, my father is.
I see. But, unless you file a separate return she would be liable for the income tax.
Is there anything else I can assist you with today? Publication 501 can be accessible, HERE
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