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PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4666
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I am self-employed and my husband is full-time employed. Our

Customer Question

I am self-employed and my husband is full-time employed. Our 2015 federal tax bill is 6K. I had my husband set up to take out a lot from his paycheck, but not enough to cover my self-employment tax burden. In 2016, my business is not going well at all, so there will not be as much of a problem.Would there be any benefit to us filing 2015 separately? Right now I have us as joint file -- that's where I get the 6K. We do not have children or other dependents. Thanks for your advice.
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from just answer. I'mCustomer I'll assist.

You likely won't save anything by filing separately. That generally benefits only when one of you had high medical expenses. The higher tax rates levied on married separate offset the savings.

You might consider something else, that is, incorporating your business and taking a w-2 from it for some of the income. Any profits you don't take as wages escape the 15.3% self employment tax.

Thanks for asking at just answer. Positive feedback is appreciated. I'mCustomer

Customer: replied 1 year ago.
Can I incorporate retrospectively? That seems unlikely.
Expert:  PDtax replied 1 year ago.

I will post an Offer to outline how you can accomplish that very effect.