Investors & landlords

The forms are not interchangeable. A corrected form is nice but doesn't sound expected and they could mess that up too. Let's go with what we have. You can't enter the 1099-NEC or you get a business so we will fudge things.

Enter as 1099-MISC with the royalty income where it belongs. Your taxes are correct. 

Depending on the amount, the IRS may want to know why you didn't report the 1099-NEC. You may want to make a couple more entries to help explain the situation. You can add the NEC income and description, then remove the income. This helps clear up what you were doing and why you added the NEC.

First enter the income:

1. go to the federal income section
2. scroll to the bottom
3. Miscellaneous Income, 1099-A, 1099-C, Start
4. Scroll to the bottom
5. Other reportable income, Start
6. Other taxable income?
7. Select YES
8. Description erroneous 1099-NEC
9. Amount, enter your amount
10. Continue

Subtract the income:

1. Miscellaneous Income, 1099-A, 1099-C, Start
2. Scroll to the bottom
3. Other reportable income, Start
4. Other taxable income?
5. Select YES
6. Description erroneous 1099-NEC
7. Amount, enter your negative amount
8. continue