My wife and I jointly own an LLC. We have two 1099-Misc (made out to the LLC). How do we report those in TT so that the income is divided according to our ownership %?

I have seen suggestions that the 1099s are reported by one and/or the other, then expensed by one to the other in proportion to the ownership share, but it's not clear exactly where the expense would be shown in TT or on Schedule C, or where the income would be captured on the other spouse's Schedule C. (I.e., we are each filing a separate Schedule C, and need to divide the income from the 1099s between them).

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1 Best answer

New Member

Jun 3, 2019 1:07:36 PM

The key is to not report the 1099-MISC as a form. The IRS does not care if you specifically reference a 1099. They just want you to report the income. As long as you report enough income to cover all 1099s, then you're fine.

So, complete two Schedule Cs, and enter the income split 50/50. You do the same thing with your expenses.

Here's how to report your income without a 1099 entry:

You can claim your self-employed income without a 1099-MISC

Log into your account and click Take Me To My Return (you must click this before searching if you are not already in your account)
Type “Schedule C" in the search box, top right of your screen, then click the magnifying glass
Click the "jump to schedule c" ink in the search results.
Follow the onscreen instructions - you may need to answer some business profile questions first if you haven't set up a business already
You will arrive at the Your Business page where you will see the various income and expenses categories.

To enter business income not on a 1099-MISC, follow the above instructions, then:

• On the Your Business page, click Start or Update next to Business Income

• On the Business Income page, click Start or Update next to General Income

• Enter income not designated on a 1099-MISC on the next page, "Tell us about additional income"