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aelijah-lynch
Level 1

If I receive a W-2 paycheck into the same checking account as my 1099 contractor pay, should I mark it as "personal" income?

My main job is 1099 and I pay all my own taxes, thank you QB. I recently picked up food delivery, trying to increase my income (healthcare costs) until I could get a more traditional (ie, W-2) second job. I had my 1099 main job's pay direct depositing into one checking account and the delivery (also 1099) go into a different checking account. But now that I've secured a W-2 (and will stop doing the delivery work), what's the best way to demarcate it? Without opening ANOTHER checking account, if possible?

1 Comment 1
JorgetteG
QuickBooks Team

If I receive a W-2 paycheck into the same checking account as my 1099 contractor pay, should I mark it as "personal" income?

Thank you for sharing your situation, Aelijah. It’s great to hear you secured a W-2 job while managing your 1099 income from your main job and the food delivery work.

 

It's essential to keep your income sources separate for tax filing purposes, even if they are deposited into the same account.

 

While you can use QuickBooks to manage your income categorization, consulting an accountant can be beneficial. They can provide tailored advice for your situation, especially during the transition to W-2 income, and ensure everything is categorized correctly for tax purposes.

 

I have also gathered some resources to help you manage your transactions and create bank rules to streamline the categorization process in QuickBooks Self-Employed:

 

 

If you have further questions or need more assistance,  you can reply to this thread, and the Community team is always here to support you.

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