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Ken from Philly

Question

I received a personal 1099-NEC for fees earned by my S corporation

Forum|Forum|2 years ago
February 6, 2024
1 reply
0 views

Hi, I just received a 1099-NEC to me personally, mailed to my home address, for a referral fee earned through my sole member S Corporation. It is a huge amount and it was deposited in my corporate account for general business use. Now I am freaking out, as I am fearful the IRS will tax me personally for this business income. What are my options?

Not A Product Question

If the Form 1099-NEC has your social security number on it, you can enter the Form 1099-NEC as business income in TurboTax, and then enter an expense for the same amount to cancel the income out. Call the expense commissions or something like that. If you don't enter it the IRS will likely send you a bill for the associated tax, which you can protest and get reversed, but probably better to report it and avoid that trouble.

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Employee

And just to add some clarification, make sure you then record this on your S corp return.

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.