Form 1099-NEC

[sss0407]

My husband and I own a small business, but we both retired last year and have a manager running it now. My husband was collecting social security, but passed away in December. I'm getting very conflicting answers with regards to whether or not I can continue to collect my husbands social security. I do not get a paycheck, but the profits from our business will be over the minimum of 21,000 that they said I could make. Is it possible to file a 1099-NEC for the profits from the business that I will receive monthly and still continue to draw my husbands social security? The business is set up as an LLC for liability purposes and S Corp for taxes. I do not want to get in hot water at the end of the year and have to pay it back if I am incorrect. 

Thank you. 

[leeloo]

I'm sorry for your loss.

Can you provide more detail? 

1) Are you one of the owners of the S-Corp? If you are, you do not issue yourself a 1099-NEC. The profit from the corporation flows through to your personal tax return via Form K-1.

2) What is the issue with your husband's social security? Are you under retirement age and limited as to the amount you can collect?

[sss0407]

I am the sole owner now. I am 61 so I am under the retirement age. When I spoke with social security, he said as long as I am not physically going in everyday and working it, I would be allowed to take the profits  from the business and my husbands social security. But then my accountant is saying those profits go on to the K-1 form and I wouldn’t be allowed to do that. So if I took the profits as a draw or on another form, I was just trying to see if it was possible to still be able to receive my husbands soc sec benefits. I will be 62 in April, I don’t work the business anymore except for in emergency’s. 

[leeloo]

Your accountant is correct. Profits have to be reported on a K-1. Unfortunately, you can't report the profits any other way.

[sss0407]

Thank you so much for your help. I was getting so confused with the answers and was afraid I’d get myself in trouble. Much appreciated!