This approach is not advisable. You received the 1099-Misc because the income is taxable. It is not permitted to create a negative entry to subtract the amount from your taxable income. If you click the link to the IRS page in that response, you will see that it is specifically referencing down payment assistance from tax exempt organizations. I believe the poster failed to take that into account. They were assuming that a 1099 had been issued in error for income that was not actually taxable. Even if that was the case, the correct approach would be to have them correct it, not enter a fictitious negative entry in the tax return. Its important to report everything accurately in a tax return to avoid audits and penalties in the future.
