Confusion on Married Filing Separately (California)
My spouse and I got married in July 2024. My spouse did not work in 2024 and has an income based stunted loan repayment plan. We are filing sepratley because we do not want her repayment to rise sharply. I earned $30,000 of w-2 and $140,000 of k-1 income (LLC taxed as an S-Corp). My S-Corp had $70,000 of business expenses. We're trying to understand if this now means she has to claim 50% of the S-corp's income, or if she has to claim 50% of it's adjusted income? Of if she is able to avoid it entirely somehow as the whole point of this is to avoid increasing her income based repayments at the moment.
Posted Apr 15, 2025, 7:32 PM UTC
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