Should / How Do I Enter LLC Information into TurboTax Online

[saul775]

Here's my scenario:

My brother and I both own an LLC (50% each).  However, he did not work or get paid by the LLC in the year 2023.  Therefore, when filling out the Form 1065 and Schedule K-1, his portion of the profit was 0%, and my portion was 100%.  Additionally, our LLC paid me as contractor; therefore, I completed a 1099-NEC for myself.

For illustrative purposes, let's assume the LLC did $50k in income.  I paid myself $25k as a contractor (1099-NEC), so the LLC made a $25k profit that I have already submitted to the government in the form of a 1065.  We're neglecting costs and other deductions at the moment.

I'm confused as to how to enter this information into TurboTax.  TurboTax is asking me if I own a business.  Yes, I own a LLC but only 50% of it.  Additionally, it's asking if I issued a 1099-NEC.  Well, I did not issue a 1099-NEC for my CONTRACT work; the LLC issued me a 1099-NEC.  I'm just a little confused as to how to proceed and could use some feedback.  Thank you.

[AmyC]

You have two moving parts. First, the k-1 from the LLC you partly own is entered. Second, you have a 1099-NEC for contract work. It does not matter that it comes from the partnership. This income has not had Medicare and Social Security tax paid. The only way to pay those taxes is to enter the NEC as a business on Sch C to flow through to create the SE tax needed. You will indicate that this is a business so the SE tax can be generated and paid. Officially, you have a partnership with your brother and your own business.

See Am I considered self-employed?