1099 is partially for S-Corp and partially for an individual

[ESL Teacher]

I was operating as a sole-proprietor from Jan-Nov in 2019.  In December 2019 I opened an LLC/S-corp and started doing business through my LLC/S-Corp. The problem is when the company I contract with sent me only one 1099 for 12 months' worth of income in my S-corp's name and EIN number.

How do I separate out the 11 months of income that wasn't S-corp income but instead sole-proprietor income?

[Anonymous_]

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@ESL Teacher wrote:

...How do I separate out the 11 months of income that wasn't S-corp income but instead sole-proprietor income?

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You will simply report all of the income on your S corporation's income tax return (1120-S) and then indicate on that return that the corporation received part of the income as nominee for you, as sole proprietor (that part is then subtracted out and reported by you on your individual income tax return).

[DianeC958]

Report the full amount of the 1099 income on your business tax return since the IRS will be looking for the information on that return.

Take the amount that was reported on the 1099 and divide it by 12, multiple that number by 11.  Then take a deduction on your business tax return for the 11 months of income and in the description indicate that the 11 month amount it being reported on your personal return on Schedule C.

[ESL Teacher]

Thank you for your quick response! The income earned was different for each month. Would it be better to subtract the amount earned in December from the total for the year?

[Anonymous_]

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@ESL Teacher wrote:

Would it be better to subtract the amount earned in December from the total for the year?

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Yes, you could do that but you have to report the income for the entire year on your S corporation return since the 1099 was issued in the name of the corporation with the entity's EIN. 

So, just subtract the January through November period from the December (i.e., December belongs to the S corporation and the balance to your sole proprietorship).