Hi everyone,
I have a few tax-related questions pertaining to my personal and business taxes.
In 2014 I worked for 2 companies and received two W2’s for each. I was also working for a nightclub that eventually went out of business mid-year. This nightclub was paying me as an independent contractor under my business EIN. (My company deals with nightlife promotion so I figured it would be a good source of income for my business.) I was averaging approximately $1,100 month working for the club.
I submitted a P&L for both the first and second quarter of 2014 with a tax accountant and ended up sending the IRS $1,000 for my taxes. My accountant advised me that my company is an S-Corp and when it came time to file my personal taxes (i.e. now), I could include the income I “paid myself.” During all of 2014, I only paid myself via business checks 8 times and wrote “salary” in the memo section. The total paid to myself was $2,311.
Since the club shut down, I was no longer receiving steady income like before. When I went to file my Q3 taxes and provide another P&L, my tax accountant stated since I hadn’t generated much income, I did not have to file with the IRS. I hadn’t generated much income in Q4 either, so I didn’t both seeing my accountant at all.
Here we are in 2015 and I’m nearing the April 15th deadline. I have opted to file my taxes via Turbo Tax to avoid paying my previous accountant’s absorbent filing fees. I have managed to successfully enter in all the W2 information I received, but also received a 1099-MISC from the nightclub that went insolvent. The 1099-MISC states I only made $825 and is under my name with no mention of my business LLC. I find this doubly strange, because I was raking in $275 per weekend or $1100/mo. from January 2014 - July.
Should I file this 1099-MISC income with my personal or business tax information? I obviously made much more than $825 for the 2014 year with said nightclub. I’m also insure how to file the income I paid myself through my business. Should I file as an W2 employee or 1099 independent contractor? (I am the owner of the business with no employees btw.)