Should 1099 misc income be subtracted from gross reciepts

[tom12]

All work for the company is done through an invoice and all paid invoices reported as gross receipts. When the 1099 misc income is entered, is this income then double reported since it was already included in gross receipts? In other words, should income reported from 1099 misc be subtracted from gross receipts?

[Anita01 · Accepted solution]

It depends entirely on your bookkeeping system.  If you know for certain that the income reported to you on a 1099-MISC is the same as the income from reporting one or more of your invoices, you would not enter the 1099-MISC as it would be duplicating your revenue.  It makes no difference which one you use for your tax returns.

Ir would be best if you could actually match the 1099s to specific invoices and note that information in your own bookkeeping system.  You always want to make sure your internal income is reporting at least as much as the 1099 totals.  You also want to be sure that the 1099s sent you to you accurately reflect your income for that job.  Customers do make mistakes.

[John_RS]

I wish that TT would make it clear or have a means to internally resolve 1099MISC with invoiced income. For years I've used TT with Quicken H&B and come tax time I have this same issue that TT asks for all 1099MISC, I enter them in hopes that it reconciles them against invoiced income, then find the income is doubled. Yet I know the IRS is expecting me to report them in my filing. I try to make sense and determine a resolve only to give up and delete them all and hope it doesn't tempt fate for an audit.

So TT should get their hands around this and make it blatantly clear that 1099MISC entry is NOT needed IF the amounts are covered in the invoiced income. Assuming that they are as stated in the prior comment/answer. Or at least have us enter them and have something like Quicken to "Match"the 1099 to the imported invoice detail. It would save us sole-proprietors a lot of stress. C'mon TT, get on this already.