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Level 3
February 18, 2022

federal income tax withheld on LLC royalty income/1099 Form

  • February 18, 2022
  • 1 reply
  • 11 views

Has anyone ever had federal income tax withheld on LLC (royalty) income? How do you get the taxes back? is there a way to report it on the federal LLC return to get the refund? or pass-through to members for them to get credit on their returns? or have to get it back from the payer and have them correct 1099?

 

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    1 reply

    sjrcpa
    Level 15
    February 19, 2022

    It gets reported as backup withholding on the K-1s. Line 15O.

    The more I know the more I don’t know.
    Level 3
    February 19, 2022

    Awesome! Thanks