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About QuickBooks Self-Employed: If I have already recorded the income (marking it as business/income) from a company and then receive a 1099-NEC, when preparing my taxes with TurboTax (married filing jointly), should I still enter that form? Wouldn’t this add up and result in double income? How should I proceed?
@doblaje-arias If you recorded your business income properly, the amount on the 1099-NEC will almost always already be included in your total business income for the relevant year.
You definitely should report the 1099-NEC on your income tax return. The IRS expects to see it on your return, and if they do not, they will add it for you.
As an example, if you had $100,000 in business income and a $40,000 1099-NEC, but reported the $100,000 in income without reporting the 1099-NEC, the IRS would adjust the income on your return to be $140,000.
I'm not particularly familiar with the TurboTax program; use TaxSlayer myself. Regardless, to continue the example above, you would break your income down into Cash and Checks of $60,000 and a 1099-NEC of $40,000 to total to the $100,000 in business income.
Thank you for reaching out regarding your concern about handling 1099-NEC forms while preparing your taxes with TurboTax, @doblaje-arias. I understand that managing these details can be confusing, especially after you've already recorded your business income. Your concern about the potential for reporting double income is valid. Moreover, I agree with @FishingForAnswers response, which clarifies this process effectively, and I will include additional recommendations for further guidance.
I highly suggest that you reach out to your tax agency for assistance. They can give you clear advice based on your specific situation. They have the expertise to help clarify any questions regarding the 1099-NEC forms and ensure that you are meeting all compliance requirements, which can ultimately prevent any potential issues down the line.
In addition to this, you can easily export your data to TurboTax Self-Employed, saving you time and minimizing data entry mistakes. To learn more about it, check this resource: Send QuickBooks Self-Employed tax info to Turbo tax Self-Employed or Live.
If you have additional questions or clarifications about 1099-NEC or other tax forms, please add them in the comments below. Your concerns are important to me, and I aim to ensure you have a seamless experience with the program while providing the right answers you need. Wishing you all the best!
I appreciate both responses, but as @FishingForAnswers mentioned, they are not familiar with TurboTax. In fact, I’ve already done the export from QuickBooks to TurboTax before (and was planning to do it again now), which is exactly why I have this question.
Since QuickBooks Self-Employed will export my total income—including the amount already recorded under business/income—and I will later add the 1099-NEC in TurboTax, how does it not end up being counted twice?
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