Tax troubles: Separating business income
A sole proprietor turns to FSB for help filing his income taxes.
(FORTUNE Small Business) -- Dear FSB: Can I register as a sole proprietor of a small business and be taxed separately from my wife's and my income tax? Or do I have to include the income from the small business on our federal and state forms? If so, what forms will I have to use?
- Anthony, Detroit
Dear Anthony: According to Walter Robinson from Walter Robinson & Associates LLC, a Chicago firm that provides tax and accounting services to small businesses, you cannot be taxed separately from your marital income.
The sole proprietorship should be reported in schedule C, one of the attachments to the income tax return form 1040. You can find the schedule C form and instructions for filling it out at the IRS website.