Question by geek: question on paying small business quarterly taxes.?
My husband and i own our own computer repair business as a partnership. When we have to pay the quarterly small business taxes for medicare and ss do we split the income and both pay separately or as one.
How would we do a joint venture. Its a DBA right now
Best answer:
Answer by cainvest1
You each file your tax deposits separately as each of you have Social Security and Medicare obligations and federal taxes if you are making a profit. The partnership merely flows the income/expenses to you in a K-1. It does not pay taxes.
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Have you considered doing this as a “qualified joint venture”? That would allow you to simply file 2 schedule Cs and 2 schedule SEs with your tax return.
As far as estimated tax payments, if you file jointly, you just write one check. Credit for the self-employment income will get to the SSA via the 2 schedule SEs.
you each file Sch C, sole proprietor, and you split the income and expenses equally in half, you each pay your SE taxes(approx. 15.3%) of the Sch C ‘net’ and include in your joint 1040
half of the se tax is a credit to reduce your gross income
and anticipated taxes are paid quarterly on 1040ES, with the only remaining voucher left for Jan. 16, 2011