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juanmur
New Member

I've filed my individual taxes jointly as I the wife and I get 1099 Individually, but I also have a P.A under my name so how do I file under my P.A now?

 
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DavidS127
Expert Alumni

I've filed my individual taxes jointly as I the wife and I get 1099 Individually, but I also have a P.A under my name so how do I file under my P.A now?

Your professional association is a type of corporation, so it must file a corporate tax return.  Depending on the election you make with the IRS, it will either be a regular corporation that files Form 1120, or a "Subchapter S" corporation ("S Corp") that files Form 1120S.

 

If you are taxed as a regular corporation, the corporation pays taxes on profits, and distributions to shareholders (you) are also taxed as dividends.  So, any distributions of cash to you from the corporation (other than compensation reported on a W-2) is a dividend that must be included on your individual tax return.

 

If you are taxed as an S Corp, the S Corp is a "pass-through entity" and all the profits (and losses) are reported to you on a Schedule K-1 that you enter when you prepare your personal tax return.

 

In either case, you should prepare your business tax return before your individual tax return, because income from the business is likely to be reported and taxed on your individual tax return.  If you have already filed your individual tax return, you may need to file an amended return to add your business income.

 

See the IRS web page on Business Structures at this link, with additional links to Corporations and S Corporations.

 

You can use TurboTax Business to file a Form 1120 or Form 1120S.

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