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Single Member LLC , Passthrough Tax Return , where to report LLC bank account 1099-INT?

Forum|Forum|2 years ago
October 7, 2023
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1099-INT is issue to my LLC

so question

1. If i report it as normal income under business since there is NO 1099-INT reporting in business section of turboxtax, i would be paying self-employment tax on it on top of fed + state tax, right? Even if i do it, how does IRS know i clearly reported 1099-INT back

2. if i report it under 1099-INT schedule B in my personal return , how does IRS know it i properly reported since i will be putting my name in "interest belong to "?

TurboTax Home & Biz Windows

Best answer by Critter-3

1. If i report it as normal income under business since there is NO 1099-INT reporting in business section of turboxtax, i would be paying self-employment tax on it on top of fed + state tax, right? Even if i do it, how does IRS know i clearly reported 1099-INT back Interest earned on a bank account used by a Sch C business is NOT income to the business ... you will NOT report it on the Sch C unless you want to pay SE taxes on passive income. It is ALWAYS reported on the Sch B UNLESS you are in the business of lending money.

2. if i report it under 1099-INT schedule B in my personal return , how does IRS know it i properly reported since i will be putting my name in "interest belong to "? Even if the EIN listed on the 1099 is the one for the Sch C business you will still list the interest earned on the Sch B ... the IRS matches the income from the EIN to the personal SS# because when you applied for the EIN you linked it to your SS# ... it is just that simple.

A

Anonymous_

Employee

Report the interest income on Schedule B, unless you are in the business of lending money or the interest is from notes or accounts receivable.

See https://ttlc.intuit.com/community/taxes/discussion/how-to-report-1099-int-interest-income-received-by-an-llc-taxed-as-a-disregarded-entity/00/425653/page/3

Critter-3Answer

1. If i report it as normal income under business since there is NO 1099-INT reporting in business section of turboxtax, i would be paying self-employment tax on it on top of fed + state tax, right? Even if i do it, how does IRS know i clearly reported 1099-INT back Interest earned on a bank account used by a Sch C business is NOT income to the business ... you will NOT report it on the Sch C unless you want to pay SE taxes on passive income. It is ALWAYS reported on the Sch B UNLESS you are in the business of lending money.

2. if i report it under 1099-INT schedule B in my personal return , how does IRS know it i properly reported since i will be putting my name in "interest belong to "? Even if the EIN listed on the 1099 is the one for the Sch C business you will still list the interest earned on the Sch B ... the IRS matches the income from the EIN to the personal SS# because when you applied for the EIN you linked it to your SS# ... it is just that simple.