topic 1099-NEC for Amway business registered jointly with partner in Get your taxes done using TurboTax

1099-NEC for Amway business registered jointly with partner

stubbs28 — Mon, 08 Mar 2021 02:02:57 GMT

We received the 1099-NEC with both our names listed, but only my partner's social security number. Amway has both our social security numbers, but since my partner's name is listed first, the form was produced with that social security number.

Should I go ahead and just report half the income in my own Schedule C and have my partner report their half on theirs?

How will this reconcile with reporting to the IRS from Amway?

Thanks.

Re: 1099-NEC for Amway business registered jointly with partner

npierson7 — Mon, 08 Mar 2021 02:40:55 GMT

Report the whole amount from the 1099-NEC form as your income, and deduct the part which belongs to your parner as your business expenses as payments for outside services. Your partner has to report this income on his tax return as self-employment income. Officially, you have to issue form 1099 to anyone to whom you paid more than $600 during tax year, but since it was the company who didn't file the forms correctly, you shouldn't be penalized for that.