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so I’m now learning that in order to contribute money to a solo 401k that I will need an EIN. Ok cool I can get that easily for free from the feds.
I can also contact a company I contract with like Uber and have them update my tax standing to use my new EIN. Ok cool easy.
So now the 1099 will show this new EIN as having income instead of me.
But then I guess I would need to file a completely different set of taxes for this new federal tax id number right?
And because this is my only income, that means I would have no income, so I would lose out on the standard deduction?
(no I’m not asking for specific tax advise)
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Your Schedule C will have your EIN in addition to your Social Security Number. Except for entering the EIN, you file exactly the same as if you didn't have an EIN. It's not at all "a completely different set of taxes." It's exactly the same, except that you enter your EIN when TurboTax asks for it. It's still your personal income.
No, you still file a single personal tax return that includes a schedule C for your self-employment, you will just list the EIN on the schedule C instead of your SSN.
Your Schedule C will have your EIN in addition to your Social Security Number. Except for entering the EIN, you file exactly the same as if you didn't have an EIN. It's not at all "a completely different set of taxes." It's exactly the same, except that you enter your EIN when TurboTax asks for it. It's still your personal income.
oh my god thank you so much for the help!!!!!
what if I have 1099 income with my social, and also 1099 income with my EIN? Meaning I did work as my company using the EIN and then some different type of work just as me using my social.
So if I have both kinds of income I can't just put my EIN instead of my social on my sch C right?
I would have to file 2 completely different taxes as 2 different entities I assume?
No, if it is all self-employed income or sole proprietor business income, it will all go on your 1040 personal return. You are one tax entity. If you are self-employed, those incomes and expenses are entered on your Schedule C, which flows right into your personal return. From the IRS's view, that is all you.
If you have two streams of income from self-employment and they are completely different businesses, for instance, rideshare driving and home daycare, they will each need their own Schedule C in your return. If one is using your EIN and the other is using your SSN, that is fine, those are both identifiable as part of your personal return.
If you have two streams of income and they are from the same kind of business but with different sources of payment, such as driving for both Uber and Lyft, then you can enter all of those incomes and expenses on one Schedule C. If one uses your SSN and the other uses your EIN, then enter your EIN on the Schedule C but any other 1099s which have your SSN will still be identifiable as you, within your return, so that is still consistent.
@mrtk31 wrote:
So if I have both kinds of income I can't just put my EIN instead of my social on my sch C right?
You put your EIN in addition to your Social Security number on Schedule C. Schedule C has two separate places for your Social Security number, which is always there, and your EIN.
THANK YOU ALL, YOU ARE THE BESTESTSSSS 🙂
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