EIN or SSN for unrelated business income?

[miketech]

I have a sole-proprietorship with an EIN. For each W9 form that I fill out, I use my EIN as the tax ID number. I recently worked as an independent contractor for a company and performed services that do not relate to my typical line of work for my business. They have asked me to fill out a W9 form so that they can pay me for my services. I have read online that using an EIN for 2 unrelated sources of business income is incorrect. I could use my SSN for the tax ID number, but am wondering how this will work. From my understanding, the income will still get reported to the IRS the same way regardless of if I use my SSN or my EIN. Will the IRS be able to distinguish the 2? Can I fill out a 2nd Schedule-C with my SSN to report this unrelated income? Thanks in advance for your help.

[DawnC · Accepted solution]

Yes, you will need to fill out 2 different Schedule Cs.  One for your sole proprietorship and one for the unrelated self-employment income.   You should have a Schedule C for each line of work/business you have. 

You should be using your EIN only for income related to that line of work/business.   Any income that is not related to the sole proprietorship with the EIN should be associated with your SSN.   So, the W-9 you gave as an independent contractor for services unrelated to your business should have your SSN.  As long as you keep good records, you will be able to explain it in the unlikely event you are asked about it.   But you should give them an updated W-9 with your SSN if that income is unrelated to your sole proprietorship.  

[miketech]

Great, thank you so much! This really helped

[DGrigg]

I need some guidance for TurboTax.  I have separate EIN number for some freelance self-employed business, and also use my Soc Sec # for the other freelance self-employed business.  I have received several 1099-NECs for each.  Assuming I need to enter separate income & expenses for each into TurboTax Home & Business software, how do I establish separate Schedule C for each?

Dave G

4/9/22

[PatriciaV]

@DGrigg

When you finish setting up your first Schedule C business, from the page "Here's the business info we have so far", look for a box under the list that says, "Add Another Business." This link will start a new interview for your second business.