Question

When entering 1099 NEC or 1099 Misc the program asks if it is for me or my spouse. It is for our small business. Where is a 1099 for a small business entered?

Forum|Forum|5 years ago
March 13, 2021
3 replies
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TurboTax Live Self Employed

Small business income from Form 1099-NEC (or 1099-MISC) is reported on Schedule C of Form 1040. The interview is located in the Self-Employment section of Income and Expenses (see the attached screenshot for navigation assistance).

Enter "1099nec" in the Search Box of TurboTax Self-Employed (or Home and Business) and select "jump to 1099nec" from the results.

When you get into the Self-employment interview, the "General Info" screen asks questions about the business. One of them is "Who does the work?". (See the attached screenshot for your options)

B

beanhad5Author

Thank you for your response. What does that mean - to split the business income and expenses? Do I have to enter everything twice, once for each spouse?

ColeenD3

If you have a QJV, you would split the income and deductions 50/50.

Definition of a Qualified Joint Venture

A qualified joint venture is a joint venture that conducts a trade or business where (1) the only members of the joint venture are a married couple who file a joint return, (2) both spouses materially participate in the trade or business, and (3) both spouses elect not to be treated as a partnership.

A qualified joint venture, for purposes of this provision, includes only businesses that are owned and operated by spouses as co-owners, and not in the name of a state law entity (including a limited partnership or limited liability company)

B

beanhad5Author

Thanks! We're not a QJV, we're a LLC.

Carl11_2

Employee

you are reporting business income/expenses on SCH C, then understand there can only be one owner of a such a business type, typically referred to as a single-member LLC or sole proprietorship.

If there are two owners of the business then you have a partnership or multi-member LLC. A partnership or multi-member LLC files it's own physically separate tax return, which is a 1065-Partnership return.

If you live in a community property state and;

- the business only has two owners and;

- both owners are married to each other and;

- are filing a joint tax return, then:

it's perfectly acceptable for the owners to split all income/expenses down the middle and each report their share of income/expenses on their own separate SCH C as a part of their 1040 joint tax return. So you'd be filing a personal 1040 tax return with two SCH C's included - one for each of you.

In this case, you just split the amounts reported on the 1099-NEC or 1099-MISC between the two SCH C's.