Question

1099K for business income

Forum|Forum|2 years ago
March 9, 2024
1 reply
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I received a 1099K with my business name on it for a small amount of $375 from credit card sales.

Do I enter this info under the section asking for the 1099K and NOT the general business income section? Or do I need to list it in both sections.

When I go to enter the 1099K, it asks who it is for and has my personal name, which I assume is correct, even though the 1099 is in the business name.

Thank you!

D

DianeW777

No, do not enter it in both places. You can enter the income from the 1099-K directly on your business/self employment activity.

This will be added directly on the business/self employment section.

Search > Type schedule c > Click the Jump to... link > Edit next to your business > Scroll to 'Add income for this work'
Select Other self employed income , includes cash and checks > Continue > Enter description and amount
See the image below.

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T

terimac4Author

Another question.

How does the health premium deduction work? I anticipate this for next year. Do I have to have insurance specifically for this business? Or if we get insurance, I can claim it under this business? I ask because I actually have 2 small businesses in my name.

Could I deduct up to the profit of both businesses or just one?

D

DianeW777

Yes, it's quite possible. This is handled on Form 7206 for self employed persons. TurboTax will assist when you are ready next year and the information below will help get you started with your plan.

Deducting health insurance premiums

If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents.

This health insurance write-off is entered on Part II of Schedule 1 as an adjustment to income and transferred to page 1 of Form 1040, which means you benefit whether or not you itemize your deductions.
Unlike an itemized deduction, this deduction treatment is beneficial because it lowers your adjusted gross income (AGI).
Having lower AGI can reduce the odds that you’ll be affected by unfavorable phase-out rules that can cut back or eliminate various tax breaks.

Eligibility is determined month-by-month

You can only claim the health insurance premiums write-off for months when neither you nor your spouse were eligible to participate in an employer-subsidized health plan.

For example, if you were single and ineligible for any employer-provided health plan during the last six months of the year because you left your job and started your own business, you can claim the deduction for premiums you paid for coverage during that six-month period.