Vanessa A
Expert Alumni

Deductions & credits

You do not need to enter the 1099-NEC on your return.  Since you have your own books that you keep track of all of your income and expenses on, the 1099-NEC's do not have to be reported separately as long as the income is accounted for.  When you go through the business info, it asks if you use cash or accrual method of accounting, this will easily explain any discrepancies in your 1099-NEC's received and your income reported.  

 

There is not a way to report that you are not going to report that 1099-NEC on your return this year because it was included in income last year. 

 

If, for some reason, you would happen to receive a letter at some point in the future from the IRS stating you understated your 2021 income, you would just respond as such. Keep the form for your records along with the statement that it was for the previous year.  

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