I am a sole-proprietor, providing engineering consultant services to clients in California. In 2020, I billed a new client $4,000 for a retention fee, and $3,000 for consulting services. Accordingly, my client provided me a 2020 Form 1099-NEC with $7,000 in Box 1, and all was good. Then, in 2021, my Client paid me $600 as a final payment for my services, and I then returned to him the $4,000 held in retention (for a 2021 net gain of $3,400 to my client). Who gives who a 2021 Form 1099-NEC, and how much in its Box 1?
You'll need to sign in or create an account to connect with an expert.
not you. at best the client to you for the $600. on your return, you'll show a refund of $4000
Thanks for the reply - hopefully my client will agree.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
nydcks
Level 1
Cv771223
New Member
ckoether71
New Member
donnycheng1-gmai
New Member
erica97
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.