How do I add 1099 nec to schedule k-1

[johnnywayne99]

I have a schedule k-1 and 1099 nec but they are the same info

[AliciaP1]

If you received a Schedule K-1 from a partnership or S-Corporation that you have ownership in, you should not have received a 1099-NEC.  You need to contact the business and let them know to void the 1099.

See What is a Schedule K-1 Tax Form? to see how the K-1 gives you all the information about your income from the business.

[pj4470]

I have a single member LLC, filed as a Sub-S.  I provide consulting services to other business. I receive a 1099-NEC from these businesses.  When the tax professional does my business taxes they provide me with an 1120-S and Schedule K-1.  Should I enter both the 1099-NEC AND the Schedule K-1 info into Turbo Tax?

[DaveF1006]

Yes, you will need to enter these into the Turbo Business product since you are structured as an S-Corp. To enter the 1099 NEC, the income will be reported under Business income>service receipts. This is income that the S-Corp is receiving. 

If you look further down in the screen, here will be a section to enter the K1 as well.

@pj4470

[pj4470]

Thanks for the response.  I'm using Turbo Tax Deluxe & it seems to let me enter both the 1099-NEC and the K-1 information.  Will Turbo Tax Deluxe not compute the information properly?

[GeorgeM777]

Yes, it will, but didn't your tax professional enter the 1099-NECs on Form 1120-S, U.S. Income Tax Return for an S Corporation and issue you a Schedule K-1?  To follow-up on the comments from @DaveF1006, you have two different tax forms to complete, i.e., one for your S-Corp and the second your personal tax return.  If you do need to prepare Form 1120-S, you will need TurboTax Business (this is not the same as TurboTax Home & Business).  If Form 1120-S has already been prepared and includes the 1099-NECs, then all you should be reporting is the income, loss, and any other items reflected on your Schedule K-1.  You can enter your Schedule K-1 information into TurboTax Deluxe.  

You may have heard that S corps are pass-through taxation entities.  What this means is that the S Corp does not pay income tax at the entity level. Instead, the profits and losses are passed through the business and reported on the owner's--you are the only owner because you indicated that you are a SMLLC--personal tax return. In effect then, Form 1120-S is an informational return.  Your S Corp will issue you a Schedule K-1, which it appears it has done so, therefore, all you need to do is report the Schedule K-1 on your tax return.    

Just an FYI the due date for Form 1120-S is the 15th day of the 3rd month after the end of the corporation's tax year.

@pj4470 

[pj4470]

Yes the 1099-NEC, along with other income from other sources was provided & included on the 1120-S.  Your answer really provided the clarification I was looking for!

THANKS!!