Income that is not reported on a 1099 NEC

[tgad1000]

Good morning,

the income that I received was not reported on a 1099 NEC. I have informed the company that I did the work for them that I am intended to file an S-corp and therefore, they didn't file a 1099. Now, I went back I will file my tax for an LLC. What should I do now in my Turbo tax home and business. How do I report this income and under what? please explain in details.

Best...

Tarek

[DianeW777 · Accepted solution]

It depends.  You nay need to clarify exactly what did take place.

1. If you included the income on the S-Corp return and then completed the 1120S-K1, for your distributive share of income, then it will be reported through your K1 on your personal return.  
2. If you did not complete a return for the LLC S-Corp that must be done.
3. For any other scenario please explain more details here and we can help.

[tgad1000]

this is what happened! the company that I did the work for them did ask me, whether I'm filling an S-corp or an LLC and I said S-corp. therefore, the company didn't file an 1099 NEC. I don't know how they report the money that they gave to me to the IRS. When I asked the company they said that they didn't file a 1099 NEC because I said previously that I'm going to file an S-corp. I hope this helps. If not, please let me know what kind of details you need.

I appreciate your help.

Best...

Tarek

[DaveF1006]

It depends. The company may or may not have reported the income paid to you but it is still your responsibility to file if you received the income. If you are filing as an S-Corp, you would report the income in the manner that DianeW777 suggests in her previous post.

If you file as an S-Corp, you will need to purchase a Turbo Tax Business return and file a 1120-S. Turbo tax Home and Business does not file a 1120S. Once you prepare your S-Corp return, the program will generate a K-1 to report in your Turbo Tax Home and Business return. You may purchase the Turbo Tax Business return here.

FYI, you do not need a taxable document such as a 1099 NEC to report your income. To report in the Turbo Tax Business return, once downloaded, go to:

• Federal Taxes
• Income
• Client Services provided or
• You can create your own categories if you are comfortable doing so. 

[tgad1000]

I want to file as an LLC. what should I do?

[CatinaT1]

An LLC is a legal structure and not necessarily a tax term. You can be an LLC as a sole proprietor, a S-Corp, a Partnership, etc. While you may have an annual report to file with the state you are structed in, your income tax return will be filed based on what type of entity you are.

It sounds like you are a sole-proprietor who has set up the legal structure of an LLC, is that correct?

Did you elected to be taxed as an S-Corp? This requires filing a Form 2553. If you are an S-Corp, you will file an 1120-S Business Tax Return. This return generates a K-1, which reports your income to you as the business owner. The information from the K-1 is then used to report income on your personal tax return.

If you did not elect to be taxed as an S-Corp, you will file your income on your personal return using a Schedule C. 

Once you provide this information, we can more accurately advise you on how to proceed.

[tgad1000]

Let me explain what I have done so far. there is on page in turbo tax home and business where it is stated all kind of income, e.g. 1099 NEC, and other. I found a General income category. can I use this category to reflect the money that I received? if this is okay. when I select the General income, I get a table with two fields, one is the income and one is the description. what should I put in Description ? should I put the name of the company that I earned the money from? let me know.

By the way, I didn't receive any income form from the company that I did the work for them.

Best...

Tarek

[CatinaT1]

It depends. We can not advise you further without knowing what type of return you are filing. This will determine how and where it is reported.

It sounds like you are a sole-proprietor who has set up the legal structure of an LLC, is that correct?

Did you elected to be taxed as an S-Corp?

[tgad1000]

No, I elected to file as LLC? in this case, should I ask the company that I received from it my income?

Yes, it is a legal entity, but I file it as a consultant company.

[CatinaT1]

So if you are not an S-Corp, and are filing a Schedule C, they would need to to provide you with a 1099-NEC. 

Fill out a W9 form for them. Since you are not taxed as an S-Corp, here is what you would mark. Do not mark LLC.

[tgad1000]

Thank you!

I have the Turbo Tax home and business. On the page of income there are four options:

1099-NEC

1099 MISC

1099-K

General Income

Other income.

I don't know which one I choose. I didn't get a 1099-NEC. Should I use the General income category?

And if so, the general income gives a table that has two fields Description and Amount. please let me know.

best...

Tarek

[DianeW777]

Yes, you should use the General Income category for your income. The important action is to report all of your income whether or not you received a form.

@tgad1000 

[tgad1000]

Thank you so much! but should I put in the Description box, should I put the name of the company?

[KrisD15]

You can enter "Fees" or "Sales" depending on whether you perform services or sell items. 

The burden of the 1099-NEC is not on you since you received the funds. 

You don't need to report a 1099-NEC in order to report the income. 

Keep a record of your income with your tax file. On that record is where you would list who paid you and how much. 

[tgad1000]

yes!