entering info from 1099 misc

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ketanco
Posts: 108
Joined: Wed Jul 24, 2013 7:09 pm

entering info from 1099 misc

Post by ketanco » Thu Mar 30, 2017 2:21 pm

I earned royalty income for book selling on amazon's createspace last year which generated a little over $600. when i was entering my tax info in the very beginning, i wanted to enter my LLC EIN, (i am single owner), but they said no, this is disregarded entity and i should enter my own ssn. so i did. (and they still say the same) so the 1099 misc they sent me now has both my name, my company name and my own ssn on it. and the money went to my LLC bank account. this is the situation.

Now when i enter this income, do I enter into schedule E, or a schedule C for my LLC, or i make a second schedule C for myself and enter there? Note: IRS publication 17 page 92 says that there is an exception for writers that they can enter to schedule C. well i am not a writer only but writing is part of my business since couple years, because books I wrote are in same subjects of my websites that I run through my LLC and I advertise my books on those sites too.

Silk McCue
Posts: 1323
Joined: Thu Feb 25, 2016 7:11 pm

Re: entering info from 1099 misc

Post by Silk McCue » Thu Mar 30, 2017 4:52 pm

Others will reply but I will share what I know. I was a sole member Llc. As such I had an FEIN but it had nothing to do with my taxes. My w9 had my social, my name, and the name of the LLC per the instructions on the form. The LLC never had any reported income because all 1099's had my social and my name on it. Sometimes the 1099 had my LLC or DBA name on it but that means nothing in a sole member LLC scenario. Therefore you only need to do a schedule C for you and your social. Your LLC has NO income. Sometimes I would receive a 1099 with the LLC FEIN on it but I always got that fixed before filing my return.

clemrick
Posts: 87
Joined: Wed Sep 09, 2009 8:46 pm

Re: entering info from 1099 misc

Post by clemrick » Thu Mar 30, 2017 5:04 pm

I would enter it on your LLC Sched. C. I have 1099Misc in my SSN and my EIN and put them together on one Sched. C. And since the books are on the same topic as your websites, I think they are part of the same business.

Silk McCue
Posts: 1323
Joined: Thu Feb 25, 2016 7:11 pm

Re: entering info from 1099 misc

Post by Silk McCue » Thu Mar 30, 2017 5:14 pm

clemrick wrote:I would enter it on your LLC Sched. C. I have 1099Misc in my SSN and my EIN and put them together on one Sched. C. And since the books are on the same topic as your websites, I think they are part of the same business.
He is a sole member LLC and is therefore a disregarded entity. His LLC has no income as his 1099 has his social on it based upon the IRS instructions on the W9. I had 12 1099's from businesses and lots of direct income from individuals deposited in my LLC named Checking account. He must use Schedule C. His LLC has no income and never will have income unless he decides to become a sub S someday.

ketanco
Posts: 108
Joined: Wed Jul 24, 2013 7:09 pm

Re: entering info from 1099 misc

Post by ketanco » Thu Mar 30, 2017 6:01 pm

but what is the point of running my business, if it is disregarded and i must still enter everything to my own name schedule C? then my business will be at a loss always. I operate websites on technical subjects and write books on these subjects too. sometimes i even do consulting based on these subjects too. it is all together and i do through my business. if my LLC can not enter income for anything then what is the point of having an LLC, i mean why do single member LLCs exist, if it is disregarded and we put everythin on our name anyway. ... also my SSN still writes on LLC schedule C anyway...

Silk McCue
Posts: 1323
Joined: Thu Feb 25, 2016 7:11 pm

Re: entering info from 1099 misc

Post by Silk McCue » Thu Mar 30, 2017 6:30 pm

The LLC gives you legal protections that a simple sole proprietor does not. That is a great value. If you look at the W-9 you can either be a disregard LLC, a C corp, S Corp or a Parthership. If you begin to make serious money you may want to convert in the future to an S-Corp but that is an expense and complication that is unnecessary. Your should investigate when doing so might make sense.

Just because you report under your Social on schedule C does not mean your business is a loss. What shows up on the Schedule C - income and expenses, deductions etc determine if your business has a profit or a loss. Don't get hung up on it not being filed on you LLC EIN. It absolutely doesn't matter.

Katietsu
Posts: 1615
Joined: Sun Sep 22, 2013 1:48 am

Re: entering info from 1099 misc

Post by Katietsu » Thu Mar 30, 2017 11:38 pm

Since you have one business then you have one Schedule C with all your income and all your expenses reported there. You can use the name of your LLC on the Sch C. It does not matter if the paperwork, receipts, etc show the LLC or your personal name, you can still report them on the same Sch C.

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