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Level 2
posted Apr 3, 2023 11:18:51 AM

Why does adding 1099 in TurboTax increase my tax liability?

I use QuickBooks desktop to track income and expenses. Then I use TurboTax to file as sole proprietorship. When I import my QuickBooks company file into TurboTax, all of my income is already listed in TurboTax. 

 

Then, as I add 1099 to TT, they increase my income above what it actually is. So, I'm showing double the tax liability on the reported 1099 income. 

0 2 164
2 Replies
Level 15
Apr 3, 2023 11:22:05 AM

Do not enter the 1099 forms since you already entered the income from QuickBooks.  You don't need to enter the 1099NEC or 1099Misc.  You can enter the total gross income as Cash or General.  Only the total goes to schedule C line 1.  So delete the 1099s.  

Level 2
Apr 3, 2023 11:27:26 AM

Thank you so much for the quick and informative response.