Thanks for the reply and sorry for the lack of clarity.
I am self-employed with a LLC.
Part of my business is consulting and training. For the consulting, I received 1099NECs since I am a non-employee. If I consult for $1000, then $1000 is taxed as income.
Part of my business includes selling physical goods which I obtain from a supplier. If I sell $1000 worth of widgets that cost me $800, my profit is $200 of which $200 is taxable as income.
However, I have 2 customers whom I sold $1000 widgets to that sent me a 1099NEC for the entire amount of the sale ($1000). Those widget sales were straight physical-goods transactions, no consulting or other non-employee services were involved.
If I enter in the full amount they list on the 1099NEC, my income aka tax liability goes way up. I believe their use of the 1099NEC for this situation is in error.
Upon reflection, I shouldn't receive a 1099MISC for those sales either, correct?
