Husband And Wife Farmers

[JenMO]

Husband farmer has a loss on farm, but can pay on the option to get credit for Soc Sec. Wife works with husband, can I give the wife a Sch F with just income so she can also pay SE. Can I take some income from husband and give to wife without dividing up expenses. It would be like he paid her for her work, which she does. But, it would then qualify them for EIC because of their child. Anything wrong with this? or doesn't look right?

[Jiggers]

Husband hires wife!

Husband farmer has a loss on farm, but can pay on the option to get credit for Soc Sec. Wife works with husband, can I give the wife a Sch F with just income so she can also pay SE. Can I take some income from husband and give to wife without dividing up expenses. It would be like he paid her for her work, which she does. But, it would then qualify them for EIC because of their child. Anything wrong with this? or doesn't look right?

Have the husband hire the wife, write payroll checks to her, withhold SS, MED, and WH, and issue her a W-2. Then the husband can elect the optional SE.

The wages paid to the spouse should be reasonable.