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Level 1

All of my income is reported in Quickbooks, how do I avoid paying taxes on 1099-MISC twice?

I received payment three ways in 2019: through Stripe online payments, physical checks from businesses, and direct-deposit from a separate employer. All three methods are recorded in Quickbooks as income and transferred over to Turbo-Tax as income, but I received a 1099-MISC for the physical checks and a W-2 for the direct deposit. How do I file those documents and avoid paying taxes on that income twice since it is already grouped into my yearly income within Quickbooks?

4 Comments
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Moderator

All of my income is reported in Quickbooks, how do I avoid paying taxes on 1099-MISC twice?

Hey there, Braysher.

 

For your 1099, you'll need to tag those transactions as Personal income to avoid being taxed twice. For your W-2, you'll need to record it to your tax profile this way the system will not triple calculate the taxes.

 

Make sure you've categorized all the transactions correctly and recorded those on your Tax profile.

 

To know more about this process, I'm leaving you some articles to help guide in filing 1099 and W-2 in QuickBooks Self-Employed:

 

I'll be around to help if you have any other tax concerns. I'd be more than willing to lend you a hand.

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Level 1

All of my income is reported in Quickbooks, how do I avoid paying taxes on 1099-MISC twice?

Thank you for your fast reply RoseMarjorieA! Just to make sure I understand, if I tag the income that will be included on the 1099 as personal in Quickbooks, won't that income still show up in TurboTax twice? Once as personal in Quickbooks and once as business from the 1099? 

 

 

 

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Level 1

All of my income is reported in Quickbooks, how do I avoid paying taxes on 1099-MISC twice?

Thank you for the fast reply RoseMarjorieA! Just to make sure I understand correctly, if I mark all of the income transaction that correlate to the 1099 as Personal in Quickbooks, won't that income still be counted twice in TurboTax, even if it isn't taxed twice? Once as Personal in Quickbooks and once as Business when I enter the 1099 into TurboTax? 

 

Also, the 1099 and W-2 are from different businesses (not sure if that was clear before), so should I do the same thing with the W-2? Mark the correlating income transitions in Quickbooks as Personal and then enter the W-2 into TurboTax normally?

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QuickBooks Team

All of my income is reported in Quickbooks, how do I avoid paying taxes on 1099-MISC twice?

Hey there, @Braysher

 

Thanks for following up with us. 

 

You're on the right track. You will approach the W2 the same way. You'll mark the income included on the W2 as personal income in QuickBooks, then file the W2 as usual in Turbo tax. However, I highly recommend reaching out to your accountant to ensure this is the best course of action for you and your business. In the meantime, you can reference the articles provided by my colleague above. Also, you can speak to one of our tax experts as well. Below I've included the link to reach a tax expert. 

 

Check out Turbo Tax Support

 

Please let me know if you have further questions or concerns. I'll be here every step of the way. You can always reach out to the Community or me anytime you find you need assistance. Take care and have a good one!

 

 

 

 

 

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