1099 Misc/NEC transfer to Schedule C

[Frosti]

When 1099s are entered, they do not transfer to a schedule. Please make the ability for entered 1099s to link to a schedule C or F

[qbteachmt]

That's because these are informational and not matched. Their purpose is that anyone paying enough to meet the reporting minimum must issue that form, but even if no one pays enough to reach the reporting threshold, your taxpayer is supposed to report all funds they were paid. Not just the amounts seen on 1099s. Example: your taxpayer might have income of $2m for Sched C purposes, but as long as no one customer paid at least a total $600 for services (and directly, such as cash or checks), there will be no 1099-NEC at all. Think of these 1099s as components or subsets. Not the reporting amount. They are not a reconciliation the same as 1099-R or 1099-SSA, for example. Your job would be to use the values they give you, and compare that to the informational reporting, because that is what has been revealed to the IRS. The IRS is not expecting that exact amount to be reported, necessarily.

[scarlettax]

@qbteachmt I don't think what you shared is what she is referring to. In ProConnect, you cannot "attach" 1099-MISC to Schedule C (and thus Schedule 1) currently like you can in DIY TurboTax product. At least it is not intuitive. 

[George4Tacks]

@scarlettax ProConnect shares non of the Turbo Tax traits. 1099-Misc and 1099-NEC are only  entered if there is withholding. The gross amounts are entered in the appropriate line or form and we go on from there. I do things like hit the + in Schedule C income and create several lines to mention the source and amount for each 1099, then check the totals against the P&L.

If you truly want to do things the way TT does them, then use TT, ProFx or ProSeries, but even they allow you bypass the tedious and useless input. 

[qbteachmt]

"you cannot "attach" 1099-MISC to Schedule C (and thus Schedule 1)"

Because that is not the Task at hand. That is not what is supposed to be happening.

The 1099-NEC is only issued by customers who have paid the taxpayer's business $600 or more, from their business, which validates their business expenditure.

The taxpayer client is supposed to report everything they made in their business. Not only amounts on the 1099-NEC. You don't need to "attach" anything. You need to enter everything. In Gross.

If there are multiple entities, you enter each business' Gross. The 1099-NEC or Misc is informational and not the Amount you enter. You enter the amount based on the operational reality. I already explained that part.

TurboTax is built around prompts, so that the DIY can follow along. Enter everything that got reported about you by your clients to the IRS (all the 1099-NEC info) and then also enter the rest of the info you think the IRS will not find out about your business, in other words. That's how you get them to remember they are supposed to report everything and not hide, for instance, cash payments. Or, as we have discussed in other topics, Barter or Chickens as payment for services.

[scarlettax]

@qbteachmt Yes, I get that the 1099 is informational and everything should be entered on Schedule C -- all income and expenses related to the business. However, this is a functionality issue. Frosti and I seem to agree that there should be an enhancement to include the functionality to link Form 1099(s), whether MISC or NEC, to Schedule C. I think data entry would be more efficient and accurate that way. I have raised it up to customer service, hopefully there is an enhancement for this. In summary, my viewpoint is that this is not a compliance/reporting issue, it is a system issue is.

[Frosti]

@scarlettax said exactly what I am getting at. Of course, all income should be entered. Since someone brought up TurboTax, Intuit created both programs; therefore, they can incorporate the ability to link the forms to Schedule C or another Schedule. Doing so will help with efficiency and tracking. The only problem here is that people with differing opinions are getting unnecessarily saucy. If I wanted to be incompliant and use TurboTax and not sign customers' tax returns, then I would have done so. Proconnect is a dynamic program that should continue improving and evolving over time. 

[George4Tacks]

ProSeries and TurboTax link 1099's to various Forms.

Lacerte, which developed outside the realm of Intuit never has and ProConnect is it's cousin.  

It's good to want things, but this want is very unlikely to happen due to the inner structure of the program. 

If you like the idea - Vote for it above and MAYBE someday it can happen. 

[qbteachmt]

"brought up TurboTax, Intuit created both programs"

Intuit bought it from Chipsoft.

I don't agree or disagree with the program issues. I am stating that's not supposed to matter, if you enter the business data properly. The IRS does not do form reconciliation (at this time) for this issue.

[LamarD2]

I am new to Proconnect.  I used TaxAct for years.  Using Proconnect has been a challenge.  What I got from this topic is that I don't have to enter the details of 1099-NEC's nor 1099-MISC's, if no taxes were withheld from the payments.  Just enter the dollar amounts in the Gross Receipts field on the Schedule C and keep it rolling! 

Hummm....

Looks like it will take some time to get the hang of this program.   TaxAct is easier to use, probably very similar to TurboTax.  

Well, since I made the switch, I'm going to keep it simple.  As one of my managers used to tell me, "keep it simple...".

[rcooley25]

I don't know what pro series prgram you are using but here is how it works with pro basic.

Make sure the schedule c is already set up. 

When you fill out the 1099 on that screen there is the op[tion to where you want to transfer it to. There will be schedule C , other income or something else. Make your choice and it will transfer.