uckoff
Returning Member

Get your taxes done using TurboTax

you said that you used TT business, then you sand that you used TT home and business.  

So which one did you use?  Turbo Tax home and business does not tell you that if you are an S-corp you cannot file your business taxes with TT home and business, You must file your business taxes with TT business, then when you do it will produce a 1099 for you to use when you file your personal taxes with TT home or home and business (you dont need to use home and business if you are an actual S-Corp or corp because you dont claim any business expernces on TT home and business because you do that with TT business when you file your business taxes which are separate from personal.  When you do use TT business then you must use the 1099-k from PayPal as your business income under your business filing using TT business NOT your personal or else you will pay Self Employment tax which is 3 times or more than when you file correctly under your actual business using TT business, then you report the 1099 from your actual business as other income on your  personal taxes and the tax is only what the standard tax table for that amount is when you are down to your actual taxable income.  That is the advantage of having the S-corp election for tax purposes bc it is passed through on personal taxes and not taxed as self employment,  BC you are not self employed you are employed by your business ,  If you did not claim you 1099 on your business tax and you claimed it as SE income on your personal then you would of overpaid in Taxes by probably 75%.  You will need to amended both your business and personal returns and claim the PayPal 1099 on your business and then file you personal as amended as well and you may get $ back  that way as well bc chances are you file incorrectly and you overpaid.  

And it doesn't matter if you paid for Audit defense bc if you did not claim income as reported to the IRS they will send you a letter stating that you owe tax on the amount reported on the 1099-k