1099-misc from rent is double counted for my LLC income

[dqh]

I got a a 1099-misc from Housing authority for rental income. When I entered this into my tax returned the amount appeared under Business income and expense. But that amount is already reported under the rental property and royalties. I saw both my federal and state refund decrease as result of adding 1099-misc.
Also since my rental property income is negative even if I remove that amount in 1099-misc it doesn't not affect my federal and state refund.
Should I remove 1099-misc?

[AmandaR1 · Accepted solution]

If you mean you received a 1099-misc with amounts in box 1 for rent, which you had already entered under the rental property, then, yes, you should delete the form under the business.  You never need to enter the same income twice, as this will double your income. Instead, you should delete general income and report the 1099 instead.

The 1099-misc for rents (box 1), should be entered in the rental property. Since you've already entered this amount as general rental income, you'll need to delete it. Under the rental property, there's a specific option for your 1099-misc for rent. Follow the steps below: 

1. Login and click Take me to my return
2. Select the Federal Taxes tab and then click the Wages & Income tab below it (or Business tab and jump to step #4)
3. Scroll down to the Rental Properties and Royalties section and click the blue hyperlink Show more
4. Click Start/Revisit next to Rental Properties and Royalties (Sch E)
5. Answer through the screens and you'll come to the summary screen listing your property(ies). Click Edit next to your rental.
6. On the Review Your XYZ Rental Summary screen, click Update next to Rental Income.
7. The next screen will ask you if any income was reported on a 1099-Misc and you'll need to select one of the Yes options. 
8. Next, you might have a screen titled, you'll be shown 1099-MISC Summary which will show you 1099s entered in other places and you may see the 1099 you already entered. Do not select your 1099 here because you should delete it from your self-employed business instead. Make no selection and click Done.
   
9. The screen titled, Enter Info for This 1099-MISC? click Yes and you'll be able to enter your Form 1099-misc with rents in box 1 and click Continue. 
10. The next screens will review any general rental income and be sure to delete what you've already entered, so that amounts are not double counted on the 1099.
11. Lastly (or first), be sure to delete the business 1099 entry. 

[lyoshita]

Turbo Tax only allows me to select "this 1099 is for:  __Me __My Spouse", it does not give my LLC as a choice.  My 1099 is to my  LLC.

[AmandaR1]

Your LLC doesn't exist for taxes - it is a diss-regarded entity. That means your LLC has the income legally, which is great (as was probably your point with forming it). For tax goes to the next recognized entity. If you're a single member LLC, that's you! Select your name.