I’m not sure what you mean. Parsonage income in my case is on a w-4 not 1099.
I’ll lay it out again. Here’s two scenarios.
1. Wife make x amount on 1099/sched c. Husband makes x amount on 1099/sched c. Wife’s income went down this year & husbands went up.
2. Wife makes x amount on 1099/ sched c. Husband makes x amount on w-4 but claims it as parsonage so doesn’t pay much taxes on it (no experience yet first year doing it) & was told they don’t need to claim it as income in regards to Obamacare eligibility. Yes obviously will only be able to claim parsonage on whatever rabbinical income is offset by housing expenses.
In both cases is wife still eligible for PPP?
I think my bigger question is going to be how to calculate income per quarter because we get paid randomly not on the first of every month so there isn’t really any official income per quarter…
Assuming you mean that parsonage is recorded on your
W2, then it shouldn't be taken into account in relation with PPP, because that's employee compensation and not self-employment compensation.
Now, back to your question:
You need to calculate the 25% reduction on a cash or accrual basis- your Schedule C should have either box checked off on Line F, and based on that you need to make your calculations.
Line 7 on your Schedule C is your gross income, which can be used to calculate your 25% reduction on an annualized basis. If your wife, in aggregate with your income on that line, or on a quarterly basis, meets the 25% reduction, go for it.
If you do not meet the 25% reduction in aggregate, but your wife does meet it separately, then it's a bit harder for me to answer... I'm still waiting for an answer but have received so much conflicting information as to the definition of "affiliate" that I'm reluctant to say anything on the matter.