Question

1099 NEC and S Corp

Forum|Forum|5 years ago
April 1, 2021
2 replies
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I received a 1099 NEC to my S Corp EIN. I've already filed taxes for my S Corp. Do I need to report my 1099 NEC on my personal taxes.? (My S Corp paid me as an employee for 2020 and I've received a W-2 for those payments.)

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M

MinhT1

If you received a 1099-NEC in the name of your S-Corp and you have not included that amount of income in your S-Corp tax return (form 1120S), then you must file an amended return for your S-Corp to include that income.

The S-Corp will then provide you with an amended schedule K-1 which you will use to amend your personal tax return.

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Rick19744

How many shareholder's does the S corp have?

*A reminder that posts in a forum such as this do not constitute tax advice.Also keep in mind the date of replies, as tax law changes.

DanielV01

You don't want to report the 1099-NEC on your personal return. Doing so will subject the amount to Self-Employment taxes, which your reportable share of S-Corporation income is not subject to Self-Employment taxes. Another question would be if the amount recorded on the 1099-NEC is already included in your S-Corp income. If that is the case, then just hold on to the form, and be ready to show the IRS that the income reported to you has, in fact, already been included in your 1120-S.

If the amount reported on the 1099 has not been included in your S-Corp's original return, you would then need to amend (or supersede) your 1120-S to include the income (which will create an amended K-1, which would create a change to your personal return. If your personal return is already filed, then you would need to amend that also). But it most definitely is not income you want to include on your personal return.

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R

raj27

Since you filed Form 1099-NEC, the IRS has the information on the contractor you paid. All you enter on your S-Corp return is the related expense amount.

@raj27

Thank you!