Can FreeTaxUSA handle complicated Business income?

FritzBlitz
FritzBlitz Member Posts: 2 Newcomer
in Filing my taxes

I have two 1099-NEC forms. I entered those in the appropriate place. I also need to report other business income for which I didn't receive a 1099. However, the software demands that I link the 1099-NEC forms to my "other" business income. But when I link them, it duplicates the amounts and messes up everything. Why does your software do this? Can FreeTaxUSA handle this tax situation?

Answers

  • CoryF
    CoryF FreeTaxUSA Agent Posts: 168

    Hello Fritz.

    I understand your situation. We do support everything when it comes to reporting your business income on the Schedule C. This has two possibilities.

    The first is that the Income Summary page will show the gross income reported on the 1099-NECs and the Gross Income reported with the Schedule C(s) on the same page. This doesn't mean that they are both being added to your Tax return as a double counting income. It only reports that you have entered information into the software for your 1099-NEC and the Schedule C. You can check the Federal Form 1040 Preview that is found on the Summary tab to be sure.

    The second possibility could be an input mistake. When you link the 1099-NEC to a specific Schedule C, it gets automatically added to your Income for that business. There is a subsequent income screen that has a box that you can add an extra amount of Gross Receipts. The instructions to the left of that box instructs you to add Gross Receipts not reported on a 1099-NEC. This box is for amounts received in cash or other ways that were not included in the 1099-NEC that was linked. It is possible that you added the same amount from the 1099-NEC to the Gross Receipts box. Please check to see if that is a possibility.

    For more direct assistance options, please refer to your Support center link at the top right of your account page.

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