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Level 3
posted Feb 26, 2022 9:02:53 AM

Amendment and 1099 Handling

Multi-member LLC incorrectly filed as a Schedule C on the 2020 return.  As part of that Sch C return I showed 1099 NEC income (completed three separate 1099 forms).  To correct this I've completed my 1065 Return and generated K-1s and was finishing up amending my 1040 return.  As part of the review TurboTax tells me

 

 

 

FYI...the amounts listed above ($2460) for the three 1099s were included in the Line 1 Gross Receipts amount on the 1065 return, however, I don't recall TT asking for my 1099 income during the 1065 return.

 

To clear the warning/error I thought I should go to the 1099 form and on the Box 1 section check the Other Income box.  This causes TT to add those amounts to my K-1 reported income and obviously creating a tax liability!  Should I just let TT remove the incomplete forms (ie don't fix the error/warning)?

 

Thanks

Ron

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1 Best answer
Expert Alumni
Feb 26, 2022 9:31:05 AM

Yes, you need to remove those forms from your returns.  Your K-1 has now properly reported that income to you and if you do not delete the forms you will be double stating income and therefore will be double taxed on it too.

1 Replies
Expert Alumni
Feb 26, 2022 9:31:05 AM

Yes, you need to remove those forms from your returns.  Your K-1 has now properly reported that income to you and if you do not delete the forms you will be double stating income and therefore will be double taxed on it too.