Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 1
posted Jan 27, 2019 11:25:07 AM

Income from different lines of work was combined into single 1099-MISC

I am engaged in 2 different types of self-employed business. I sometimes do business of both types at a location owned by someone else. They have provided me a 1099-MISC for the year and income from both types of business activities has been combined into a single line item (non-employee compensation.)


I had been planning on filing a separate Schedule C for each of my businesses. However, I am concerned that the 1099-MISC income will only be tied to one business or the other. Is there any good reason for this concern?

0 1 445
1 Replies
Expert Alumni
Jan 27, 2019 4:18:23 PM

If these are two unrelated businesses,  report them separately. In TurboTax,  I'd report the 1099-MISC on one of the Schedule C's, to make sure that the IRS sees that you reported it, rather than dividing it and reporting a portion on each Schedule C.

 

However, to accurately reflect the income from each activity, I'd deduct the portion of the 1099-MISC that relates to Business B from the amount reported in Business A as a miscellaneous expense on your Schedule C. Then report that amount as Other self-employed income on Business B. 

 

 

However, if these two businesses are closely related, you can report all of your income and expenses together on one Schedule C.