I am a vacation rental landlord that decided to rent for a couple months to a couple that paid via their business. They are now sending me a W-9 and will be sending me a 1099 for that rent paid. I have already included this as Rental Income in TurboTax but I have not e-filed yet. Do I need to wait for the 1099 from them, and then subtract that amount from rental income and enter the 1099-MISC in TurboTax? Or am I covered now since it is already included in our rental income total? Sorry, never dealt with this scenario.
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You are already covered since the rent to be reported on the 1099-MISC is already included in your total rental income. However, when you receive the 1099-MISC just file it with your 2021 tax return in your personal files, and you'll be fine. Besides, when you e-file, only the total is sent to the IRS. The fact any portion of that total was reported to you on a 1099-MISC is not sent to the IRS.
Also, for the W-9, I suggest you obtain an EIN from the IRS and provide your EIN on the W-9; not your SSN.
You can get the EIN from the IRS for free in about 10 minutes at https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-n...
The EIN is tied directly to the SSN you provide the IRS on that website. Then, there's only two entities that know what SSN that EIN is tied to; you and the IRS.
I myself do not provide my SSN to requestors. I provide the EIN. If I give out my SSN and it's abused, it can totally screw up my entire financial life. Whereas if the EIN is misused, that only affects my business and unlike an SSN, it's very easy to "deactivate" (for lack of a better term) an EIN, than it is it replace an SSN.
Do note that there's nowhere to enter an EIN on the SCH E. But that's fine. The IRS "knows" what SSN that EIN is tied to. So it's really not an issue.
No, you don't have to wait. As long as the amount of rent you report matches the amount of rent they put on the 1099-MISC, you won't have a problem.
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