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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29965
Experience:  Taxes, Immigration, Labor Relations
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We made an IRS accounting error and listed my jointly held

Customer Question

we made an IRS accounting error and listed my jointly held business (husband/wife 50/50 llc) income as a Schedule SE to me 50/50 split with husband.(he received a schedule SE and I, for one half the amount of the earnings) as I am a passive owner and do not participate in the daily operations of the business there should be no Schedule SE filed for me and it all should be to him 1005. This is the first year the business has made a profit
I logged into my SSA account to change my address and noticed I had earnings for 2014 which freaked me out so I pulled up the tax return and saw the mistake.
the income reported to the SE for my 50% is only $6000 but this gives SSA the indication that I am self employed.
is this amount under the max that I can earn?
should I just not worry about it for 2014 and make sure that the accountant puts the full earnings on my husbands SE next year and call SSA to alert them to the error ?
should I pay for the accountant to make the amended 2014 tax return and amended SE so that the 2014 is reflected correctly as me being passive? and then just file the 2015 correctly.
I am concerned which option is the best option and which one will be less of a trigger /bigger flag to SSA and they will question my benefit.
thank you for your help.
Submitted: 2 years ago.
Category: Tax
Customer: replied 2 years ago.
should say "filed for me and it all should be to his Scheule SE not 1005" lol
Expert:  Lev replied 2 years ago.
Hi and welcome to our site!If that was incorrect reporting - I woudl simply amend the tax return - reporting correct amounts.You woudl use form 1040X and will attach correct schedule SE.That will take some time for that amended tax return to be processed and SSA records to be updated.
Expert:  Lev replied 2 years ago.
You asked - is this amount under the max that I can earn?
Generally - there is NO maximum for tax purposes - but there are some thresholds for other purposes - and all that depends on your circumstances.
For instance if you are receiving disability income - that self-employment income will be an issue - and you woudl need to explain - so it might be better to correct the error.
If you are receiving social security benefits before the full retirement age - that amount is below the threshold - and would not affect your benefits.
Let me know what are your specific concerns?