SCH C

[gk]

Hi,

One of my client received a 1099 with his ss#. The income was direct deposited to his Sole Prop bank account. That income was reported on Sole Prop (has seperate EIN) Sch C. How do i report this on his personal tax? ( should i report separately on personal tax because he got paid on SS#). Kindly advise

GK

[abctax55]

If all the income is reported on the Sch C, there's no issue.

Your client should submit a new W-9 tho, so the FEIN is used in the future on the Form 1099.

[Just-Lisa-Now-]

All sole prop income goes on Sch C, whether the 1099MISC is in the SSN , EIN or if no 1099 was issued at all...its all included on the Sch C.

[gk]

Thank you . I did tell him about w9 but his employer want to pay only on ss# noot on EIN.

[gk]

Thank u. I entered everything on his company EIN so i dont have to enter again on sch c under his ss# and put it again as a negative no.

[qbteachmt · Accepted solution]

"but his employer want to pay only on ss# noot on EIN."

There is no Employer when your client is filing Sched C and being given a 1099 for the year. The relationship of Employer and Employee would be done with the SS and with a W2. Your client hands a new W9 to that "customer" who pays him/her and points out that either pay using the SSN as W2 employee per the labor regulations, or pay using the EIN and use 1099 for reporting to the independent contractor per regulations.

Let's clarify this: "I entered everything on his company EIN so i dont have to enter again on sch c under his ss# and put it again as a negative no."

All the business income is entered on the Sched C for that business activity; there is an EIN for that business entity, but that is not the tax paying individual. The 1099 does not control this. You would report all business income, even if no customer falls into the 1099 reporting limits.

The Sched C is a part of the 1040 for the individual, which has the SSN. That's how they relate: 1040 for the Person who is running a business, and the Sched C is for their business.

There is no double entry or negative entry anywhere.

[Accountant-Man]

Since Sole Prop Schedule C is a form included in the 1040, where do you think it should be filed?

Did you file a Schedule C all by itself(which isn't possible)?