I have business and I receive 1099-NEC from other people's business, I entered in for "other income", but it keeps adding to my own business

Forum|Forum|2 years ago
February 16, 2024
3 replies
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Hello everyone,

Recently I bought Turbotax home + business desktop software.

I have a single-member LLC business and I have form 1099-NEC from other people's business. However, when I entered my 1099-NEC forms into my "personal" tab, it keeps adding this business to my own business, but it is clearly not my business (I entered both Payer's name and TIN number). Is it possible to JUST add 1099-NEC form to my personal income instead of my business's income? Thank you!

VolvoGirl

Yes it is income for your business. That's why they sent you a 1099NEC, they paid you. It goes on your Schedule C as income. Do not enter it under Personal.

In the Desktop Home & Business version, enter the total I ncome as General income. You don't need to get a 1099NEC or 1099Misc or 1099K. Even if you did you can enter all your income as Cash under General. Only the total goes to Schedule C line 1.

Go to Business tab-Continue

Continue on to the Business Income and Expenses page -

Profit or Loss from Business, click Start or Update.

You should see the Business Summary page that lists your businesses. Then click EDIT by the business name and the next screen should be a list of topics,

Business Profile, Business Income, Inventory/Cost of Goods Sold, Expenses, Assets, and Final Details last.

Business Income - Click on Start or Update

DawnC

You are self-employed. That income needs to go on your business return, Schedule C. It goes in the Business section as part of your self-employed income. You can enter many different 1099 forms on your Schedule C. The Schedule C will be for your business, the work you do to earn that 1099 money. The people who gave you the forms are your customer/clients.

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MayichongAuthor

Thank you for your reply. Sorry I did not make this clear.

My business's service is different from my 1099 employer's. Although I have my own business, I also work for other people's business.

From my understand is, my form-1099 should be my personal income from other business, not my business's income.

VolvoGirl

Then you need to fill out 2 Schedule C. One for each business you have. The Single Member LLC and your other 1099NEC income are both self employment income. They are disregarded entities and go on your personal return on Schedule C.

Unless your Single Member LLC is an S Corp. then you need to file a separate 1120 S business return. Home & Business doesn't do the 1120 return. You would need to buy Turbo Tax Business.

Nedisoom

Hello,
I had a similar issue with managing my business finances. I own a business with a warehouse and use
odoo partner for my operations, which has been a lifesaver in keeping everything organized.

Regarding your issue, unfortunately, TurboTax is designed to automatically associate 1099-NEC forms with business income if you're filing as a single-member LLC. One workaround is to ensure you’re correctly categorizing the income when entering the 1099-NEC details. If the problem persists, consider reaching out to TurboTax support for guidance on properly classifying this income as personal.