1099K for business income

[terimac4]

I received a 1099K with my business name on it for a small amount of $375 from credit card sales. 

Do I enter this info under the section asking for the 1099K and NOT the general business income section? Or do I need to list it in both sections.

When I go to enter the 1099K, it asks who it is for and has my personal name, which I assume is correct, even though the 1099 is in the business name. 

Thank you!

[DianeW777]

No, do not enter it in both places.  You can enter the income from the 1099-K directly on your business/self employment activity.

 This will be added directly on the business/self employment section.

1. Search > Type schedule c > Click the Jump to... link > Edit next to your business > Scroll to 'Add income for this work'
2. Select Other self employed income , includes cash and checks > Continue > Enter description and amount
3. See the image below.

                                      

[terimac4]

Another question.

How does the health premium deduction work? I anticipate this for next year. Do I have to have insurance specifically for this business? Or if we get insurance, I can claim it under this business? I ask because I actually have 2 small businesses in my name.

Could I deduct up to the profit of both businesses or just one?

[DianeW777]

Yes, it's quite possible.  This is handled on Form 7206 for self employed persons. TurboTax will assist when you are ready next year and the information below will help get you started with your plan.

Deducting health insurance premiums

If you are self-employed, you may be eligible to deduct premiums that you pay for medical, dental and qualifying long-term care insurance coverage for yourself, your spouse and your dependents.

• This health insurance write-off is entered on Part II of Schedule 1 as an adjustment to income and transferred to page 1 of Form 1040, which means you benefit whether or not you itemize your deductions.
• Unlike an itemized deduction, this deduction treatment is beneficial because it lowers your adjusted gross income (AGI).
• Having lower AGI can reduce the odds that you’ll be affected by unfavorable phase-out rules that can cut back or eliminate various tax breaks.

Eligibility is determined month-by-month

You can only claim the health insurance premiums write-off for months when neither you nor your spouse were eligible to participate in an employer-subsidized health plan.

For example, if you were single and ineligible for any employer-provided health plan during the last six months of the year because you left your job and started your own business, you can claim the deduction for premiums you paid for coverage during that six-month period.

• Deducting Health Insurance Premiums for Self Employed
• IRS Topic Medical and Dental Expenses (Includes Self Employed Health Insurance Information).

@terimac4 

[terimac4]

It's confusing because the language says enter the expenses for health insurance coverage "established under your business", so I wasn't sure where to enter the amounts, under which business. 

[DawnC]

It can be applied to any business owned by you.   To get the deduction,

• Your Schedule C must show a net profit.
• The deduction amount generally can't exceed your net profit amount.
• If you (or your spouse if filing jointly) were eligible to participate in an employer's health plan during any given month—even if you declined the coverage—the premium you paid for that month can't be claimed under this deduction.
• Health insurance premiums you paid for your child, even if you aren't claiming them as a dependent, are eligible for this deduction as long as your child was age 26 or younger at the end of 2023.
• The self-employed health insurance deduction shows up on Schedule 1, line 17.   @terimac4