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?
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.
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?
Also, the 1099 and the W2 are from two different companies (not sure if that was clear before) so would I approach the W-2 the same way? Mark the income that will be included on the W-2 as personal income in Quickbooks and then file the W-2 normally in Turbo-tax?
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?
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!
I am in a similar boat, I have W2 and a couple of 1099 forms, one from the VA who I am contracted with and one from the credit card company I use to collect payments from clients.
I was under the Impression that those transactions that are tracked in Quickbooks be marked as business income? I too don’t want to pay taxes twice on the 1099 forms I received in turbo tax.
Hi there, XT.
I'd still suggest reaching out to an accountant to help you categorize your personal taxes. This way, we can avoid tax adjustments. To guide you, you can also use these articles:
Let me know if you have other questions. Take care and have a good one!
Hello, thank you for providing this information!
I have a similar situation with my 1099 income, which I recorded in quickbooks over the year with each check I received in order to correctly estimate my quarterly payments, but I now don't want to be taxed twice when I enter the 1099 info in my federal taxes. I'm trying to mark my individual 1099 income transactions as personal income type instead of business, but when I click on the info type there is no link that allows me to change it. Should I just delete the transaction instead, since I already successfully paid my 2020 quarterly estimates? (I have dozens of these transactions throughout the 2020 tax year)
Welcome to the thread, JordanKWalker.
Since you've already recorded the 1099 checks received for 2020, you'll want to make sure the payment is already deposited in your bank that is connected to QuickBooks Self-Employed (QBSE). If it's there, then there's no need to record the payment. I not, you'll need to enter it manually in the system.
Here's how to check the payment:
For more information about managing 1099s in QBSE, check out this article: Fill out a W-9 and view your 1099-MISC in QuickBooks Self-Employed.
If you're ready to file your taxes, refer to this article for further guidance: QuickBooks Self-Employed annual tax guide.
I'm also adding this article for more information about how QBSE tracks your business income and tax obligations: QuickBooks Self-Employed Overview.
I'm always here to help if you have any other concerns or questions about the 1099s. I'll get back to you as soon as I can. Take care.