If you received an erroneous 1099-Misc, you have several choices:
1. Ideally, you get a corrected
1099-misc from the payer
2. Don't report it on your
return. Attach a copy of the 1099 and a statement explaining the circumstances.
You can't e-file. From
the IRS instructions for form 1099-Misc: Form 1099-MISC incorrect? If this form
is incorrect or has been issued in error, contact the payer. If you cannot get
this form corrected, attach an explanation to your tax return and report your
income correctly.
3. Report the 1099-misc amount on
schedule C and take a deduction, for the difference in the actual amount and reported amount error, under other expenses, call it something like
"erroneous 1099-Misc adjustment"
One common complaint is that the "employer" included reimbursed expenses on the 1099-Misc. Be advised that is correct way to do it. You report the entire amount as income and then deduct your expenses, on the the appropriate line(s), on Schedule C.
