Joint 1099 under spouse's SSN while filing as single during divorce

I'm in a confusing tax situation and could really use some advice! My husband and I have a small direct sales business together (it's with Beautify Direct), and they send the 1099 form with both our names on it. The problem is that the tax ID on the form is only his SSN because he started the business and I was added as a co-owner later. We're now in the middle of divorce proceedings, and I need to catch up on filing taxes for the past couple years. I'm planning to file as married filing separately instead of jointly because, honestly, his income situation is a complete mess that I want nothing to do with. My question is: since the business 1099 is under his SSN, can I just leave off this income when I file my taxes? Or am I still on the hook for it because my name appears on the 1099 form too? The business brings in around $28,000 annually, and I'm worried about potential tax liability if I don't report it, but also don't want to deal with his portion if I don't have to. Any insights would be super helpful!

0 coins

18 comments

StarSurfer

•8M

This is definitely a tricky situation. When a 1099 has both names but only one SSN, the IRS generally considers the person whose SSN is listed as the primary recipient of that income. However, since you were a co-owner of the business, you may still have some tax responsibility here. The safest approach would be to report your portion of the income on your separate return. If you both worked the business equally, you could report 50% of the income on your return using Schedule C. Make sure to include a note explaining that you're reporting your portion of income from a 1099 that lists both names but only has your spouse's SSN. Keep in mind that if you don't report any of this income and your spouse reports only their portion (or none at all), the IRS may question why the full amount reported on the 1099 wasn't accounted for across your returns.

0 coins

StarSurfer

•8M

The IRS would indeed first look to the person whose SSN appears on the 1099, so your ex would likely receive any initial notices about mismatches. However, if you were truly a co-owner and benefited from that income, you still have a legal obligation to report your portion. Think of it this way: if the IRS later determines you were evading taxes by not reporting income you received, you could face penalties regardless of whose SSN was on the form. The fact that your name appears on the 1099 creates a paper trail connecting you to that income.

0 coins

Andre Moreau

•8M

After struggling with a similar issue when separating from my partner (our consulting business had both names but just his SSN), I found an amazing resource called taxr.ai that really helped sort things out. The site at https://taxr.ai analyzed our 1099s and other business documents and provided clear guidance on how to properly split business income for separate filing purposes. Their system immediately flagged the exact situation you're dealing with and explained what documentation I'd need to protect myself. They even helped me understand how to fill out the Schedule C properly to show I was only reporting my portion of the income. Was incredibly helpful when I was confused about my liability!

0 coins

Andre Moreau

•8M

It helps by analyzing all your business documents and providing clear guidelines on how to properly allocate both income and expenses based on your specific situation. It shows you exactly what documentation to preserve and how to report partial 1099 income on your own Schedule C. Yes, it absolutely handles complex situations like split expenses from joint accounts! It helped me document when my ex was trying similar tricks - claiming disproportionate expenses while minimizing their income portion. The system flags these inconsistencies and gives you proper documentation methods to protect yourself during an audit scenario.

0 coins

Jamal Thompson

•8M

Just wanted to follow up about taxr.ai - I ended up trying it and wow, it was exactly what I needed! After uploading our 1099s and some basic business records, the system immediately identified the discrepancy between names and SSN. It gave me specific instructions for filing my portion of the business income properly on Schedule C, along with documentation templates to keep for my records explaining the situation. The best part was how it helped me fairly split not just income but also business expenses - something my ex and I were fighting about constantly. The guidance was super clear and made me feel confident about my filing approach. Definitely recommend for anyone in a similar situation with shared business income but separate filing!

0 coins

Mei Chen

•8M

I've been in your shoes - trying to get answers from the IRS about a complex filing situation during a divorce is nearly impossible. After trying for weeks to get someone on the phone for guidance about a shared 1099 issue, I discovered Claimyr (https://claimyr.com) and it completely changed my experience. They got me connected to an actual IRS representative in about 20 minutes instead of the hours I'd been spending on hold. The IRS agent was able to confirm exactly how I should handle reporting partial income from a 1099 that had both names but only one SSN. They even noted my account with details about the situation so there wouldn't be confusion later. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c - seriously worth it when you need official guidance on something this important!

0 coins

Mei Chen

•8M

Nobody calls for you - they use a system that navigates the IRS phone queue and then calls you once they've reached an agent who's ready to talk. It basically does the waiting for you instead of you having to sit on hold for hours. I was skeptical too, but after waiting on hold for 3+ hours multiple times and getting disconnected, I was desperate. The service actually worked exactly as advertised. I got a call back when an agent was on the line, and I was able to get official guidance about my situation in one phone call. It saved me literally days of frustration, and getting that official advice gave me confidence in how I filed.

0 coins

Liam O'Connor

•8M

I need to eat my words from my earlier comment. After another frustrating 2-hour hold with the IRS that ended with a disconnection, I decided to try Claimyr out of desperation. Within 45 minutes, I got a call connecting me directly to an IRS representative who was incredibly helpful with my situation. The agent confirmed that when a 1099 has both names but only one SSN, I should indeed report my portion of the income on Schedule C with a clear notation explaining the situation. They also recommended keeping documentation of how I calculated my portion of the business income and expenses. Having this official guidance has made me much more confident in how I'm handling my return. Sometimes it's worth admitting when you're wrong!

0 coins

Amara Adeyemi

•8M

The SS-8 is primarily for determining worker classification (employee vs independent contractor), so it's probably not the best fit for your co-ownership situation. Since you were actually business partners, what you need is clear documentation of your partnership arrangement. Given the 40/60 split in responsibilities, I'd recommend documenting this thoroughly and reporting approximately 40% of both the income and expenses on your Schedule C. Make sure to include a written statement with your return explaining why you're reporting a portion of income from a 1099 that has your spouse's SSN. Also keep copies of all those texts and emails showing your business involvement - those will be crucial if there are any questions later.

0 coins