schedule c tax return?

Question

Is there any exception to the rule of not being able to use the standard deduction when filing separately when the other spouse filing separately itemizes? Or, can a husband (salesman with unreimbursed business expenses) file separately and itemize on a schedule A, and the wife (home business) file separately and itemize on a schedule C?

Answer 1

The rule is that both persons have to file the same way, either both itemize or both take the standard deduction. And what you are supposed to report on a Schedule C is business expenses that you incurred as part of your business. You could have office-in-home expenses (Form 8829) - Expenses for business use of your home and report home related expenses on that form, but you would never itemize on a schedule C what goes on a schedule A.

Answer 2

The rule for both people who are married to each other but filing separately either both itemizing or both taking the standard deduction is for schedule A, not schedule C. Business expenses go on schedule C, and can be taken regardless of whether you or your spouse itemizes on schedule A. Schedule C only is for expenses for a business you own, though, not for unreimbursed employee business expenses. Those would go on schedule A, not schedule C, and the both-or-neither rule would apply.

In your scenario, the wife with the home business would still take her business expenses on schedule C, but would have to either itemize any personal deductions on schedule A or show a zero standard deduction, if the husband itemizes on schedule A.

Answer 3

no exception but you are talking about two different things.
You don't "itemize" your deductions on Schedule C, that is for a business. If one files using Schedule A then both do.