NJ Single Member LLC Help

[ughdeeb]

Hi there, 

In the first half of 2024, I had a part-time teaching job through which I received a W-2 as usual. I've been filing on my own through TurboTax for years and I'm comfortable with this process.

However, in the second half of 2024 I also did freelance work and was paid through my NJ Single Member LLC's bank account. I have used Quickbooks Online (another Intuit product), and have kept my books balanced, noting all income/sales and expenses, etc. and my account with Quickbooks online is through my business email address, not my personal email address. 

I have received a 1099-NEC and expect to receive another for this freelance work. 

My questions are:

1. I have read that I can treat the LLC as a disregarded entity and report the income on a Schedule C on my personal tax return. Is this correct? If so, do I this through the "Self-employment income and expenses" pathway on TurboTax?

2. Since I spent a significant time balancing my books on QuickBooks online, I'd prefer not to manually re-enter everything. Is there a way to import data from QuickBooks online into my TurboTax. (Please note I use my personal email for TurboTax and a business email for Quickbooks online; each has a separate account and its a pain to try to merge them somehow).

3. If I have done all my reporting of income/expenses through QuickBooks online, why do I still need the 1099-NEC and I'm not quite sure where to "report" it. Do I just follow the "Self-employment income and expenses" pathway on TurboTax using the 1099-NEC and if all goes well, it should match the Schedule C? I have yet to see anything with a Schedule C. 

Thank you so much in advance!

[ThomasM125]

Yes, you can report the income of your single member LLC on schedule C of your personal return and you do use the self-employment income and expenses options in TurboTax.

You can use QuickBooks Self Employed to import your tax information in TurboTax Self-Employed. Click on the link in the previous sentence for instructions on how to do that.

You need to report the Form 1099-NEC on your tax return so that the IRS can match your entry to the copy of that form that they received. It is common for self-employed individuals to receive more money from sales that the total of the amount reported on forms 1099-NEC, so the IRS makes you itemize the 1099 form on your return to make sure you reported everything. You will just need to reduce the income reported in QuickBooks by the amount reported on the Form 1099-NEC so that you don't overstate your income.

When you enter the Self-Employed section in TurboTax, you will see on the screen that says Your (name of business) Business an option for Business Income. Start or Update that section and you will see a screen that says Business Income and you will choose the option that says 1099-NEC Income to enter your 1099 form.

Schedule C will be populated based on the entries you make in the self-employment section in TurboTax, but the form won't appear in TurboTax online until you pay for the program at which time you can see all of the forms before you file the return.