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bobeckhardt68
New Member

Selfemployed-1099s-no other employees-better to show income as personal or as business income

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KarenL2
Level 5

Selfemployed-1099s-no other employees-better to show income as personal or as business income

It must only be shown as business income.  If not, the IRS will adjust your tax return on your behalf and send you a notice for taxes due and underpayment penalties and interest.  

You will file a Schedule C as a self-employed business owner. The Schedule C will flow onto your individual income tax return (Form 1040) and be netted with other personal income and expenses.

How to get to that area  While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area. 

When you set up your business, you can use your own name, address, and social security number (if you don't have a business name or EIN). Then, when done with the Business Profile:

  • go to Business Income and Expenses
  • select Edit next to your business (if it is there)
  • scroll to Business Income 
  • on the next screen, you will see a place to enter a Form 1099-MISC

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful. 

Also, this link may be helpful to you IRS Small Business Help Center .

 


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1 Reply
KarenL2
Level 5

Selfemployed-1099s-no other employees-better to show income as personal or as business income

It must only be shown as business income.  If not, the IRS will adjust your tax return on your behalf and send you a notice for taxes due and underpayment penalties and interest.  

You will file a Schedule C as a self-employed business owner. The Schedule C will flow onto your individual income tax return (Form 1040) and be netted with other personal income and expenses.

How to get to that area  While inside the software and working on your return, type Schedule C in the Search at the top of the screen (you may see a magnifying glass there).  There will be a popup that says Jump to Schedule C.  Select that to get to the general area. 

When you set up your business, you can use your own name, address, and social security number (if you don't have a business name or EIN). Then, when done with the Business Profile:

  • go to Business Income and Expenses
  • select Edit next to your business (if it is there)
  • scroll to Business Income 
  • on the next screen, you will see a place to enter a Form 1099-MISC

Follow through all the areas in the Business section of the TurboTax software and it will provide you with a lot of assistance. You'll notice blue links that have more information and details about the particular sections that will be extremely helpful. 

Also, this link may be helpful to you IRS Small Business Help Center .

 


View solution in original post

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