Is interest earned on a sch C business subject to employment tax? 1099-INT has the business EIN. If not, where is it entered instead of Other Income on Schedule C?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

Is interest earned on a sch C business subject to employment tax? 1099-INT has the business EIN. If not, where is it entered instead of Other Income on Schedule C?

 
4 Replies
New Member

Is interest earned on a sch C business subject to employment tax? 1099-INT has the business EIN. If not, where is it entered instead of Other Income on Schedule C?

Yes, it's subject to self-employment tax since it's income received by the business, and it's entered as Other Income on Schedule C..

New Member

Is interest earned on a sch C business subject to employment tax? 1099-INT has the business EIN. If not, where is it entered instead of Other Income on Schedule C?

Even if the interest was bank interest?  Just clarifying since I forgot to add that information in my question.
New Member

Is interest earned on a sch C business subject to employment tax? 1099-INT has the business EIN. If not, where is it entered instead of Other Income on Schedule C?

Thank you for clarifying, it does make a difference and I should've asked.  Interest income from bank accounts isn't generally considered business income for a sole proprietor.  You should just report this as your personal interest income, on Schedule B.  Sorry if I misled you.
New Member

Is interest earned on a sch C business subject to employment tax? 1099-INT has the business EIN. If not, where is it entered instead of Other Income on Schedule C?

Thanks for the answer.  Sorry I didn't provide all the info at first.
Dynamic Ads
v
Privacy Settings