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micah22222
New Member

Please clarify the T.T. wording on how to handle form 1099-MISC when completing the Income section of Form 1065.


I'm using Turbo Tax Business to complete our form 1065.  Under the 'Income' tab, it says to enter service receipts.  The wording makes it unclear what to do regarding Form 1099-MISC of which we received 2 of them.
Here's the T.T. wording:  "If you received a Form 1099-MISC or Form 1099-K reporting your income, be sure to include in your income below any amount from the Form 1099-MISC or Form 1099-K for sales receipts.

Under the 'Explain this' tab, it says, "Note: If payment for services you provided is listed in box 7 of Form 1099-MISC, you are being treated as a self-employed worker or independent contractor. Please verify that this is NOT included in the gross receipts total. It may not be necessary to report, if this information is already included in your gross receipts total."

It seems to me they contradict themselves regarding what to do with the 1099-MISC form - do I include it as stated in the first sentence above or do I not include it as stated under the 'Explain this' tab in the second sentence above.  Can someone please clarify what they're saying?  Thank you for your help.  I appreciate it.

I want to clarify that from 1/1/17 - 7/18/17, we were a sole proprietor.  In 7/19/17, we became a 2-member LLC.


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Accepted Solutions
Anita01
New Member

Please clarify the T.T. wording on how to handle form 1099-MISC when completing the Income section of Form 1065.

Many companies track their own sales and enter the amount from their own books.  Then when they receive a 1099-MISC or 1099-k, they have already accounted for the revenue on those 1099s in their own records.For example, if you have already recorded $30,000 in sales, and then you receive a 1099-k showing $20,000, it could be duplicating the sales to enter it again.

The 1099-k reports transactions that involved a 3rd-party payer such as  a credit card.  Some companies track their own transactions made with cash, such as items sold at craft fairs and then use the 1099-k to report credit card transactions.  Some companies track all their own sales, cash or credit card, and, the amount on the 1099-k has already been included in revenue,  You would not enter any payment amounts from 1099-k or 10099-MISC forms that you're already included in revenue  I know these forms are a little confusing but the point is you do not want to double report income.  At the same time, you want to make sure you have reported at least as much as these forms indicate.

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1 Reply
Anita01
New Member

Please clarify the T.T. wording on how to handle form 1099-MISC when completing the Income section of Form 1065.

Many companies track their own sales and enter the amount from their own books.  Then when they receive a 1099-MISC or 1099-k, they have already accounted for the revenue on those 1099s in their own records.For example, if you have already recorded $30,000 in sales, and then you receive a 1099-k showing $20,000, it could be duplicating the sales to enter it again.

The 1099-k reports transactions that involved a 3rd-party payer such as  a credit card.  Some companies track their own transactions made with cash, such as items sold at craft fairs and then use the 1099-k to report credit card transactions.  Some companies track all their own sales, cash or credit card, and, the amount on the 1099-k has already been included in revenue,  You would not enter any payment amounts from 1099-k or 10099-MISC forms that you're already included in revenue  I know these forms are a little confusing but the point is you do not want to double report income.  At the same time, you want to make sure you have reported at least as much as these forms indicate.

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