If TP have two business, wife makes approx $3500, but husband has a loss of $2700, will they get the stimulus? Or does one subtract from the other?
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What about MFS?
Based on the IRS guidance and the text of the law, if this couple files MFJ, they do not appear to qualify for the rebate... but maybe the IRS will treat each Schedule C separately.
The problem is that when you file MFJ, the Schedules C are netted out for purposes of AGI. The are not netted between spouses for purposes of self-employment tax.
My concern is that the rebate appears to be based entirely on certain entries on the front page of Form 1040.
For the couple in question, with respect to federal tax liability on the return itself, wouldn't the outcome be the same if they filed MFS? If so, it's worth a shot. The spouse with the net profit of $3500 should get the $300 payment. The one with the loss would get nothing.Burton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process.
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