I am a naturopathic medical practitioner and own an S-Corp for my personal client work. However, I do some independant contractor work for anotehr company. If they issued me a 1099, can I claim this as part of my S-Corp income? If not, is it possible to set up payment to my S-corporation, as I act on behalf of my S-Corp (ie. protecting my personal liability and avoiding SE tax via 1099)
My answer will:
1️⃣ Give you a simple summary up front
2️⃣ Walk through exactly how to fix this now and prevent future problems
3️⃣ Show what other answers got wrong, missed, or made too complicated
✅ TL;DR (Too Long; Didn’t Read)
No, your S-Corporation can’t “receive” a 1099 issued in your personal name.
If the 1099 is made out to you personally, you’re responsible for reporting that income on your Schedule C — even if you deposited it into your S-Corp account.
✅ The fix: Going forward, make sure the client issues the 1099 to your S-Corp name and EIN, not your personal name/SSN. That way, the income stays inside the corporation and avoids self-employment tax.
🧠 Full Answer
Let’s break this down into what you can do now, and how to clean it up going forward.
🔄 1. If You Already Received a 1099 in Your Name
If the 1099 lists your name and Social Security Number (not your S-Corp's EIN):
The IRS considers that your personal income
You must report it on your Schedule C (Form 1040)
⚠️ If you also reported that same income on your S-Corp’s return, you’re accidentally double-reporting it.
✅ Solution:
Report it on your Schedule C
Then list it as an expense paid to your S-Corp (since you transferred the money there)
Net result: zero profit on Schedule C
Income remains properly reported by your S-Corp
This satisfies the IRS and keeps your books clean.
🧾 2. Going Forward — How to Do It Right
To avoid this issue next year:
✅ Step 1: Draft a simple Independent Contractor Agreement between your S-Corp and the client
✅ Step 2: Send your client a W-9 that lists:
Your S-Corp’s legal name
Your S-Corp’s EIN
Entity type: Check “S Corporation”
Business address
✅ Step 3: Ask the client to issue Form 1099-NEC to your S-Corp, not you personally
This moves the income entirely into the company — which:
Keeps your personal taxes cleaner
Avoids self-employment tax on distributions
Keeps the IRS happy with proper structure
💵 3. Bonus Tip: Don’t Forget Reasonable Salary
S-Corp income isn’t subject to self-employment tax — but only after you pay yourself a reasonable salary via payroll.
The IRS expects it. If you skip this step, you risk penalties or audits.
🔍 What Others Missed or Got Wrong
❌ “You can expense it on your Schedule C and net to -0-” – True, but vague. Doesn’t explain how to document that transfer or why it matters.
❌ “The S-Corp can receive the income on your behalf” – No. If the 1099 was issued in your name, legally it’s your income. You can’t “reassign” it after the fact — only record it correctly to avoid duplicate tax.
✅ One answer correctly mentioned sending a W-9 with your S-Corp’s EIN — but none walked you through how to fix a 1099 that’s already in your name.
🧭 Final Word
✅ You can’t undo a 1099 issued to you personally — but you can avoid double-taxing it
✅ Going forward, always issue a W-9 and contract through your S-Corp
✅ This protects you from self-employment tax and keeps your books clean
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Still confused about how to report or fix last year’s 1099? Let’s schedule a call and walk through it together.
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