You will need to Amend Your Return. A SMLLC reports income on Schedule C of your personal return. After you select Amend, your numbers will revert to $0. You will have to pay back any refund you were not entitled to and you will also likely owe SE taxes.
To enter your self-employment income click the following:
- Federal
- Income and Expenses
- Show More next to Self-Employment
- Start next to Self-Employment
- Yes, to you have any self-employment income or expenses
- Enter the type of self-employment work you do and you can select that you use your name for your business
- Click through a few more screens and you will get to a screen that says "Your XX info"
- Click Looks good
- Then you will come to a screen that says Let's enter the income for your business. It will give you the option of 1099-NEC or Other self-employed income including the 1099K , cash and checks. Here is where you will enter your 1099
- If you do not select one, it will not let you enter your income
- Enter your self-employment income on the next screen
- Continue and on the next screen click add expenses
This income will be reported on Schedule C which is part of your overall tax return. This also means you will be subject to SE Tax. If you did not pay SE Taxes in 2023, and if you plan to do this again in 2024, it may be a good idea to make quarterly estimated payments to cover your SE taxes of 15.3% and avoid penalties.
If you have health insurance through a non-employer, you may also be able to deduct your health insurance premiums as a business deduction. The Self-Employed Health Insurance deduction is limited to your earnings. Meaning, you cannot deduct more than you earned. This is also entered in the business expense section.
If you are not able to afford the entire amount due you can apply for a payment plan from the IRS.
Taking Business Expense Deductions
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