@theunbelievable wrote:
Thank you so much for your extremely helpful answer and yes, blessedly I am thinking ahead to the 2023 return! We are in a state where we file a 1065 partnership return and yes, I will be reporting the income there as I will write a check from my personal account to the LLC. I just needed to know how to get the income off my personal return in a way that the IRS will recognize as legitimate.
To be extremely technical, the IRS official instructions say that if you get a 1099 that is incorrect, you should not enter it on your tax return, but attach a copy and a letter of explanation to your return and file by mail. However, since e-filing is preferred even by the IRS, the negative entry procedure seems to work. If the amount is under $600 and this is the only payment from that particular client, you probably won't get any tax paperwork at all.
