For Federal Partnership is an unincorporated organization with two or more members.

A husband and wife who own a qualified business can choose to classify the business as a partnership for federal tax purposes by filing the appropriate partnership tax returns,  OR they can choose to classify the business as a sole proprietorship by filing a Schedule C (Form 1040) listing one spouse as the sole proprietor.

In order for both husband and wife to receive credit for social security earnings, you can form a Partnership and each spouse would carry his or her share of the partnership income or loss from Schedule K-1 (Form 1065) to their joint or separate 1040 tax returns.

This means each spouse would report their share of self-employment income on a separate Schedule SE, Self-Employment Tax.  In most cases, this will not increase the total tax on the return.

Self-Employment Tax (SE Tax) is a social security and Medicare tax primarily for individuals who work for themselves.

Partners (including husband and wife) may have to make estimated tax payments quarterly as a result of partnership income.  If an individual partner has net earnings from self-employment of $400 or more for the year, the partner must figure self-employment tax on Schedule SE.

This would be a good time to suggest that you contact your tax professional for details.  Failure to pay ENOUGH Estimated Taxes can result in stuff penalties.

Generally, the ES Tax is the smaller of 90% of the tax expected to be shown on the current year's tax return OR 100% of the total tax shown on the prior year's tax return.