1099-INT as Sole Proprietor

Forum|Forum|4 years ago
February 20, 2022
14 replies
114 views

I am a sole proprietor with a business checking account. I received a 1099-INT from my business banking account that was issued in my EIN as a sole proprietor. Do I enter this amount as 1099-INT on the personal portion of my return or somewhere on my Schedule C? I am concerned that if I enter it on 1099-INT worksheet that the EIN it was issued to will not match my SSN, will that matter?

JillS56

Level 10

Yes, the 1099-INT issued to business EIN then you will report this as other income on your Schedule C. The interest income would be reported Line 7 of Schedule C.

shoookAuthor

Level 2

Okay, thank you. I have seen others answer that you should enter it on 1099-INT worksheet and not on Schedule C as a sole proprietor so I wasn't sure.

Contradicting answers:

https://ttlc.intuit.com/community/taxes/discussion/i-have-a-1099-int-issued-in-the-name-of-my-business-do-i-report-that-income-as-business-income-or-as/00/562859#:~:text=If%20your%20business%20is%20a,a%20different%20answer%20might%20apply.

https://ttlc.intuit.com/community/business-taxes/discussion/what-if-my-personal-tax-return-personal-ssn-have-1099-int-for-my-sole-proprietorship-business-ein/00/2044803#M67842

https://ttlc.intuit.com/community/taxes/discussion/i-have-a-1099-int-issued-in-the-name-of-my-business-do-i-report-that-income-as-business-income-or-as/01/562859#M229334

JillS56

Level 10

It is my opinion that it should be on the Schedule C because the EIN on the 1099-INT is in the business.

Mike9241

Level 15

interest income of a sole proprietorship does not go on schedule C. it retains its character as interest income and should be reported that way. otherwise, when the IRS gets your return and looks to see if that 1099-INT was reported it won't find it and then you will get a notice. also why pay SE Tax on it and it does not qualify for the QBI, 199A deduction. This is exactly how interest income earned by a partnership or S-Corp is reported to the owners. it's on a separate line of the K-1 and flows to the interest income section of schedule B.

Mike9241

shoookAuthor

Level 2

Thank you, after thinking more about it I agree. Overall I think it makes more sense to have a mismatched EIN/SSN on a 1099-INT than a missing 1099-INT that is buried in Schedule C Misc income.