1099 MISC for business Income - Reporting?

US QuickBooks Pro for Windows : 2011

This year, I did some subcontractor work for another company and got a 1099-MISC with my FEIN as the identifier since the income was for my business and not myself personally. I am wondering if I am supposed to report this separate from my own business income or if I can include the income from the 1099-MISC in my total income for the year for tax purposes. I know how a 1099-MISC works for individuals, but not how it would be reported as business income when I file my tax return this weekend. If I have to file this as separate income, how do I enter it into Quickbooks and where would I enter it in my Schedule C for business income/loss. I do not currently use my FEIN when I file my taxes as I do not have any subcontracting employees at this time. Thank you for your assistance.

The solution

Usually, businesses don't do separate entry in the quickbooks for 1099 Misc because it's already included in their total income when they received cash from that "customer".

For example, as a subcotranctor you work for ABC company during June 2011, and you send them invoice for $2000 using quickbooks. They send you a check for this amount. and you make deposit accordingly in your quickbooks. So you alrady reocrd this amount as your income, and you don't need to take further step in the quickbooks as your receive 1099 misc.

It is fine if 1099 misc has your EIN, you are still sole propreiter, IRS has all the info. It's good that you give your customer your ein (I recommend my clients to give their EIN to their customer, instead of social security for 1099 Misc).

Now at the end of the year they send you 1099 Misc for $2000.You don't need to do anything. Just gave to your tax accountant and let him know that this is already included in the total business income of $70000 (suppose if your Gross income is 70000). May be she record this on Sch C under 1099MISC as 20000 & record 68000 separetely (2000+68000=70000total income).

I hope, I did explain well, if this is the answer Please click solved. thanks.

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