One thing to keep in mind is that you'll also need to make sure your S corp is paying you reasonable compensation through payroll (W-2 wages) if you're providing services to earn that 1099-NEC income. The IRS expects S corp shareholders who work in the business to take a reasonable salary before taking distributions. Since you're actively earning this income through your services, you can't just take it all as distributions - some portion needs to go through payroll with proper withholdings. This is a common oversight that can trigger IRS scrutiny.

Great question! Yes, you're handling this correctly. When the 1099-NEC is issued directly to your S corporation with the business name and EIN, that income should be reported on your Form 1120-S as business income. This is actually the proper way it should work once you've incorporated. One additional thing to consider - make sure you're tracking any business expenses related to earning that income so they can be deducted on the corporate return. Also, since you're actively providing services to earn this income, remember that you'll need to pay yourself reasonable compensation through payroll (W-2 wages) before taking any distributions. The IRS expects S corp shareholders who work in the business to receive reasonable W-2 wages for their services. It sounds like your clients are now properly issuing 1099s to your business entity rather than to you personally, which simplifies your tax situation going forward!

I'm also dealing with this situation right now with my father's estate. He passed in 2019 and I just received two 1099-C forms totaling about $3,100 in his name with his SSN for debts that were cancelled in 2023. Reading through all these responses has been incredibly helpful and reassuring. The consistent theme from everyone who's been through this is clear: debt cancelled after death isn't taxable income to either the deceased person or their estate, especially when the estate is insolvent like yours. What I found most helpful was understanding that creditors are legally required to issue these 1099-C forms regardless of whether they create any tax obligations for us. They're just following their reporting requirements, but that doesn't mean we automatically owe taxes on cancelled debt after death. I'm going to follow the documentation approach that multiple people have recommended: keep copies of all the 1099-C forms, create a brief memo explaining why they're not being reported (referencing IRS Publication 4681), and maintain a clear timeline showing the death date versus when the debts were actually cancelled. The advice about potential automated IRS notices is also really valuable - knowing that their computer systems might flag a "mismatch" but that it's easily resolved with a simple explanation takes a lot of the worry away. As fellow executors dealing with grief and overwhelming responsibilities, it's such a relief to see so many people who've successfully navigated this exact situation. You're definitely handling this correctly by being thorough and seeking guidance!

I'm currently going through this exact situation with my mother's estate. She passed in 2021 and I just received several 1099-C forms totaling about $6,800 in her name with her SSN for debts that were cancelled in 2023. Reading through everyone's experiences here has been incredibly reassuring. The consistent advice from multiple people who've successfully handled this is exactly what I needed to hear - debt cancelled after death isn't taxable income to either the deceased or their estate. What really helped me was understanding the logic behind this rule: deceased people simply cannot receive income after they've passed away, and estates aren't responsible for debt cancellation that occurs after death. The creditors are required to issue these 1099-C forms regardless of the tax implications, but that doesn't automatically create any obligations for us as executors. I'm following the documentation approach that several people have outlined: keeping copies of all the 1099-C forms, creating a memo explaining why they're not being reported (referencing IRS Publication 4681), and maintaining a timeline showing mom's death date versus when each debt was actually cancelled. For other first-time executors dealing with this - don't panic like I initially did! The advice about potential automated IRS notices is also really valuable to keep in mind. Their systems might flag these as "unreported income," but everyone who's dealt with this says it's easily resolved with a simple explanation. Being an executor is stressful enough without adding unnecessary tax worries. It's clear from all these responses that we're handling this correctly by keeping good records and not reporting post-death debt cancellation on estate returns.

Question for people using their apartments for filming: how are you handling the "exclusive use" requirement for home office deductions? I film in my living room but obviously also use it for personal stuff, so I don't think I can claim it?

As someone who just went through this exact situation last year, here are the key things that would have saved me a lot of stress: 1. **Start tracking everything NOW** - Create a simple spreadsheet with all your TikTok payments, brand deals, and business expenses. Don't wait until tax season. 2. **Open a separate business checking account** - Even if you're not forming an LLC, having all your creator income and expenses in one account makes everything so much cleaner for taxes. 3. **Set aside 25-30% of each payment** - Put this in a separate savings account for taxes. Self-employment tax alone is 15.3%, plus regular income tax on top of that. 4. **You'll need to file Schedule C and Schedule SE** - Schedule C for your business income/expenses, Schedule SE for self-employment tax. TurboTax Self-Employed or similar software can handle this. 5. **For quarterly payments** - Use Form 1040ES. Your first payment for 2025 income is due April 15, 2025. Don't skip these or you'll get hit with underpayment penalties. The good news is once you get the system set up, it's really not that complicated. Just treat your TikTok like the business it is from day one!

Thanks everyone for all the detailed responses! This has been incredibly helpful. I had no idea about the distinction between "care" vs "education" costs or that our pre-k program might qualify for the Child and Dependent Care Credit. I'm going to contact our school's finance office tomorrow to ask them to break down our monthly $1,250 payment into care vs educational components. Since both my wife and I work full-time and our daughter is there from 8am-3pm, it sounds like a good portion should qualify as dependent care. I'm also going to look into whether my employer offers a Dependent Care FSA for next year - that could be a huge tax saver if we can set aside $5,000 pre-tax. For this year's taxes, I'll definitely explore using one of those AI tax tools mentioned to make sure I'm not missing anything. Really appreciate everyone sharing their experiences!

Great advice from everyone here! One additional thing to consider is timing - if you're planning to claim the Child and Dependent Care Credit, make sure you have all your documentation ready early in tax season. The IRS has been requesting more supporting documents for childcare credits lately. Also, don't forget that if your child turns 13 during the tax year, they only qualify for the dependent care credit for the months they were under 13. Since your daughter just turned 4, you're good for several more years, but it's something to keep in mind for future planning. Another tip: if your pre-k program offers summer care or extended year programs, those expenses can also qualify for the credit as long as they meet the same "care while you work" requirements. We used our school's summer program last year and were able to include those costs too.

I worked for a 501(c)3 last year and they also didn't send a 1099. When I called them about it, they said they "don't do that for contractors under $10k" which is completely wrong! Any payment over $600 requires a 1099-NEC. Just be aware that when you report this income without a matching 1099, there's a slightly higher chance of getting flagged for review (not necessarily an audit, just verification). This happened to me, and I just had to show my bank statements proving the deposits matched what I reported. No big deal, but keep your documentation organized just in case.

Don't panic - you're in a manageable situation! Since you earned $5,950, you'll definitely need to report this as self-employment income on Schedule C, even without the 1099. The non-profit was required to send you a 1099-NEC since you earned over $600, so definitely follow up with them about it. Here's what to do in FreeTaxUSA: Go to the "Self-Employment" or "Business Income" section and enter your consulting income there. You'll pay self-employment tax (about 15.3%) on this income, but you can deduct business expenses to reduce your taxable amount. Think about any supplies, home office space, mileage, or equipment you used for this work. Since you're continuing this work in 2024, start keeping better records now - create simple invoices for each payment, track all business expenses, and consider making quarterly estimated tax payments to avoid a big bill next year. The key is having good documentation, whether or not you get proper forms from the organizations you work with. You've got this! The fact that you're being proactive about reporting everything correctly shows you're on the right track.