Joint returns

If you are filing a joint return, you and your spouse must each calculate the $50,000 Zone 1 threshold and the $50,000 Zone 2 threshold on an individual basis:

For the MCTMT net earnings base for Zone 1 reported on line 54a: If each spouse’s individually calculated MCTMT net earnings base in Zone 1 is more than $50,000, add the two amounts and enter the combined total on line 54a. If either spouse’s individually calculated MCTMT net earnings base in Zone 1 is $50,000 or less, do not include that spouse’s base on line 54a.

For the MCTMT net earnings base for Zone 2 reported on line 54b: If each spouse’s individually calculated MCTMT net earnings base in Zone 2 is more than $50,000, add the two amounts and enter the combined total on line 54b. If either spouse’s individually calculated MCTMT net earnings base in Zone 2 is $50,000 or less, do not include that spouse’s base on line 54b.

Example : You are filing a joint return. You have net earnings from self-employment totaling $120,000 in the MCTD, of which, $75,000 is allocated to Zone 1, and $45,000 is allocated to Zone 2. Your spouse also has net earnings from self-employment totaling $105,000, of which, $51,000 is allocated to Zone 1, and $54,000 is allocated to Zone 2.

Since each spouse’s individually calculated net earnings from self-employment allocated to Zone 1 exceed the $50,000 threshold, you must add the two amounts together ($75,000 + $51,000) and enter the total of $126,000 on line 54a.

Since your net earnings from self-employment allocated to Zone 2 is less than the $50,000 threshold, do not include your net earnings in the total on line 54b. However, you must enter your spouse’s net earnings from self-employment allocated to Zone 2 of $54,000 on line 54b.