I received a 1099 for income I earned after I created my S-Corp, so I now have an 1120-S and 1099 for the same income. What do I do with both forms? Ignore the 1099?

[bodywork4peace]

The 1099 is from a company I worked for as a contractor, but I had formed my S-Corp already and have filed the 1120-S and Schedule K.

[VolvoGirl]

Did you include the income in your 1120 S return?  Does the 1099 have your ssn or the S Corp EIN on it?

[bodywork4peace]

Yes, the income was included on the 1120-S as that was the only income earned that year as an S-Corp. And yes, my EIN is on the 1099-NEC.

[Critter-3]

Since you didn't tell that company that issued the 1099 then it needed to be issued in the number and name of the s corporation and they issued it to your social security number then the simplest way to handle this is to put it on a schedule c on your personal return as income then make an expense for the exact same amount in the miscellaneous expense section and call it something like income already reported on the s corporation. This way the IRS computer will see the income on the personal return where they expected to be but you won't pay taxes on it twice. In the future make sure all your clients have an updated W-9 form showing that you're an s corporation and the proper name and item EIN number for said business. Fyi, the s corporation is not required to have a 1099 issued to it but the payer has the option to issue one anyway.

[bodywork4peace]

Thanks, Critter-3. This answer makes sense for a 1099 issued with the SSN as you explained; however, the 1099 was issued with my EIN and not SSN. I'm not sure exactly how this will affect my case but I'm at least a step closer than I was before. 

[Critter-3 · Accepted solution]

Well if the 1099 was in the corp EIN  and if you did NOT already include it in the total income reported on the corp return you will simply amend the 1120-S to add the missing income.   FYI ... entering the 1099 forms is for YOUR use only ... that info is not sent to the IRS  so just enter your total income from your records and you never have to wait for a 1099 to come in the mail.  In fact a client does NOT have to issue a 1099 to an S-Corp at all so you should be keeping excellant records of all your income and expenses in case you are audited and need to support these figures. 

[bodywork4peace]

That helps a lot, Critter-3. Thanks. I didn't realize the 1099 was just for our records, so we're fine since the income was already reported on the 1120-S. Phew!

[Critter-3]

Yep ... the IRS gets the 1099 from the issuer not you ... what you enter in the program was for your benefit only.  But if you can add them up yourself or simply enter your total income you don't need to waste time entering in all those forms so the program can do the addition for you.