1099 Income When Self-Employed: Check the Tax ID Number

One of the more interesting quandries that I encountered this year as the accountant was doing my taxes was this: Left over from my days as a sole proprietorship were some 1099s that still had my Social Security Number on them. Some of clients hadn’t been using the new tax ID number I’d sent when I became a LLC!

It is important to note that in these cases, your income has to be divided up according to tax ID number/Social Security Number. This means that any income that is listed on the 1099 under your Social Security Number has to be considered Schedule C income. It didn’t really change my taxes, but it made things a little more complicated for my accountant. As a result, I’m sending a W-9 to my clients to make sure they have the tax ID number associated with my LLC. It’s something you should double check as well during the course of your tax preparation.

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