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kdianne
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
JohnW15
Intuit Alumni

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..

kdianne
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.
JohnW15
Intuit Alumni

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.
kdianne
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.
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