ThomasM125
Expert Alumni

Business & farm

I think you mean one of the partners received a form 1099-NEC and their social security number appears on the top of it. The best thing to do would be to request the issuer of the form to correct it and replace the social security number with the partnership ID number. If that is not possible, the partner could just ignore the form, but then he or she may get a notice down the road from the IRS assessing tax based on the income reported. If so, the partner could explain what happened and that would settle the issue. Another option woud be for the partner to report the income as "Other Income" on his or her tax return, and enter a negative adjustment to income to cancel it out. If you choose this option, when you enter the 1099-NEC, indicate that it is from a temporary job not related to the partner's work so it will show as other income as opposed to self-employment income.

 

Here is how you make a negative entry to Other Income:

 

  1. Choose the Federal option on your left menu bar
  2. Choose Wages & Income
  3. Find Less Common Income in the list of income sources
  4. Use the Show More option to expand the choices and choose Miscellaneous Income, 1099-A, 1099-C
  5. Choose the Other Reportable Income option and find Other Taxable Income in that section
  6. Enter a description for your adjustment and the amount as a negative number
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