W2 vs 1099

Forum|Forum|6 years ago
June 28, 2020
2 replies
72 views

I received a W2 that represents my business income.

I also received a W2 that represents my current employment.

I received a 1099 that represents my business income.

What is the process to have the W2 that was for business income to be placed in the Business section for my taxes? I have payroll expenses, travel expenses, training expenses, etc. I need them to show as business, not as personal income.

Thanks

rjs

Level 15

Income on a W-2 is not business income and cannot be entered as business income on your tax return. It's your pay as an employee, just like any other W-2. If you want to be considered a contractor rather than an employee in the future, you have to renegotiate the terms of the relationship with the company that is paying you.

DrKLSAuthor

Level 2

Ok -- many thanks.

This was the answer I was hoping would not be the case :). All signs pointed to that case.

Thanks -- I will start renegotiating contract terms.

Carl

Level 11

I received a W2 that represents my business income.

Please clarify and define *my business income*. If you own a business that is reported on SCH C as a physical part of your personal 1040 tax return, then under no circumstances does the owner of that business issue themselves any type of tax reporting document (W-2, 1099-MISC, etc.) There are no exceptions.

So what kind of business do you own? S-Corp? C-Corp? Something else?

DrKLSAuthor

Level 2

Thanks for the reply.

I own a LLC. I do work for a companies and they pay monthly based on invoicing from my LLC.

At the end of the year, they issued a W2, not a 1099.

How do I associated that income for the LLC and not on my personal income?

I have LLC expenses that I need to associate with that income.

There is not an option in Turbo Tax to enter a W2 for business income -- at least I cannot find it.

Thanks

Opus 17

Level 15

It sounds like you were an employee rather than an independent contractor, if you received a W-2. In that case, your expenses are not deductible. Did you have other employee benefits, such as access to group healthcare insurance? Did the company withhold Social Security and Medicare taxes? You would need to clarify this with them. If you were really an independent contractor and they issued the wrong form, they need to correct it.