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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?

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1 Reply
IsabellaG
Expert Alumni

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

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.

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