Deductions for 1099-Misc and Non 1099 income

I work from home -- all my work is done from home.  I have an independent contractor job and get a 1099.  Then I have other independent contractor without 1099.  The software is requiring that deductions be entered for each type of income separately.  But I do ALL my 1099 and non-1099 income from home.  So how do I split that?  Can I do it as a lump sum for both?

 

Do I determine what percentage of my income is the 1099, and what percentage is non-1099 and use those same percentages to split the income?

MarilynG1
Expert Alumni

Business & farm

You can have one Business reported on Schedule C, with income from a 1099-Misc plus other income NOT on a 1099-Misc combined for your Total Business Income.  You don't have to 'split' the income. 

 

Type 'schedule c' in the Search area, then click on 'Jump to schedule c'.

 

Edit/Review your Business, then choose Business Income and Start/Update. 

 

You should get a screen asking 'if you have other income not reported on a 1099-Misc'  or 'tell us about additional income', depending which TurboTax product you are using. 

 

Click this link for more info on Reporting Business Income Not on 1099-Misc

 

 

 

 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Business & farm

I meant how do I split the deductions?  The software puts the 1099-c income and my non-1099 income in separate places, but i have to itemize the deductions for each.  I can't lump sum the deductions.  I work from home and have a dedicated office space, so all my office is used for both the 1099 income and non-1099 income.  

 

Do I total my home office deductions and gas mileage, consider what percentage my 1099 income is and what percentage my 1099 income is, then use the same percentages of the deductions for the two income categories?

Business & farm

My apologies -- I did not carefully read your first answer.  I will carefully re-read your first answer.  Ignore my follow-up question for now.

DawnC
Employee Tax Expert

Business & farm

I have a question for you that may make this easier for you.....Is the income in question for the same business type or is it 2 different lines of work you are doing...........and is any of it W-2 employee income?   

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Business & farm

The income in question IS for the same business type.  It is not two different businesses.  None of it is W-2 employee income.  I didn't hire anyone.  Thanks much.

DawnC
Employee Tax Expert

Business & farm

Then it all goes on the same Schedule C - you don't need to divide your expenses up between the 1099 and non-1099 income.   You will list one business Schedule C and enter all of the income on that Schedule C.   There is a place to enter the income from your 1099s and then use the Other Self-Employment income category to report the income that was not on a 1099.  

 

You only need to divide your expenses if they are for 2 different businesses or some are personal (non-deductible).

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"