Hello:

Can I still file jointly with my wife if I have income from an LLC and she has income from an employer?

I am soon leaving my place of employment and will be a member of an LLC firm.

Can I put my income from my K-1 on the joint return and fill out the needed forms to pay taxes or am I now in a different tax bracket because I have to pay self employment tax?

thanks!

John

Yes, you can certainly file jointly with your spouse, even if you have income that is generated from an LLC.

You would report the distributive share of income from the LLC, that is reported on a K-1 form, onto your personal tax return that is to be jointly filed with your spouse. However, the only difference is that this so called K-1 income is going to be subjected to "self-employment tax."

Hence, expect to pay 15.3% additional self-employment tax on this K-1 income in addition to the regular income tax that your are liable, assuming that you would be actively involved in this LLC.

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