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Entering W2 Income Along With My 1099 Income

actfbactfb Member Posts: 1

Hi, I'm in the Events Industry and we of course lost all of our events for 2020 after Feb. Had to Pivit...a lot! To get buy I have done some door dash (which I created a 1099 Door Dash Income Account) but have also earned W2 income through my friend's water park, I was an employee (that had withholdings) which has been deposited into my business account. (Yeah not the best arrangement, but ... 2020. What would be the best way to include that W2 income?

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Comments

  • JulianPJulianP Member Posts: 1,002 ✭✭✭

    Hey there @actfb !

    Thanks for sharing those details with me and I'm sorry to hear about the issues you were faced with in regards to the global pandemic. In this case, what you'll need to do is create a new income account on your Chart of Accounts page. This account will separate your W-2 income from the rest of your funds/income.

    edited December 7, 2020
  • MikegMikeg Member Posts: 995 ✭✭✭

    @actfb,
    You should not include your W-2 income on the business income statement. That is because a sole proprietor (1099) has not paid any social security or income taxes on receipts. The W-2 already has those factored in. If you recorded as receipts (sales/other income) you will be double counting your income. W-2 is presented on line 1 of Form 1040 and a business income reports on line 7a. The appropriate category would be owner investment/draw.

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