Nominee-Reporting 1099-NEC in TT Home & Business without creating a Schedule C

[Jackaroo64]

I need to Nominee-report a 1099-NEC to my business, which I changed to an S-Corp, and for which I will file a 1120-S in "Business".  Before my Tax attorney Said "Wait a minute!", I bought "Home and Business" edition. I cannot seem to file just a personal return and enter my 1099-NEC and then find a spot to Nominee-Report it out of personal without TT creating a Schedule C. I was going to just scrap "Home and Business" and buy "Premium", but stopped because Amazon said it wasn't available (HUH?). At the very least, it appears I need to NOT transfer 2024 information into to new return because it automatically generates a Schedule C for my business, which my Attorney said, "Do Not File a schedule C with your personal return. Please Help!!!

PS. I use desktop version only.

[DianeW777]

It's a simple process to nominee the 1099-NEC to your S-Corporation (form 1120-S).  It is, however, a manual process.

Nominee Returns.  This is how the IRS knows what you are doing.

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy (use the form(s) needed) so if you don't have a color printer, go to the IRS website to fill in and print the forms here: : 

• Form 1096
• Form 1099-NEC

[AmeliesUncle]

If you don't report that 1099-NEC on Schedule C, you will likely be dealing with months of responding to IRS notices. 

Most people choose the easy route and report it on Schedule C and then back it out with an equal deduction because of the nominee, resulting in $0 profit.

Make sure that all of your W-9s are updated so it doesn't happen again next year.