1099 subcontracting

Forum|Forum|5 months ago
January 31, 2026
1 reply
17 views

If I worked for a company and say I did four jobs for them that totaled $465 and they got upset because I canceled a day before a bid that I had to go do but I told them not to schedule me so far that's why I don't want to accept the job so they got me for a cancellation fee and I didn't want to work for them anymore so basically they deposited $120 in my account but that was not the money they owed me they owed me $465 so I'm assuming that's how much they took for a cancellation fee what will they do as far as the IRS will they send a 1099 and do I have to wait on it since it was under $600 I don't know I don't know whether to claim the 120 that they actually paid me or are they going to send enough form for 465 I never got any documentation just to deposit of $120 from the company

ReneV4

Level 6

It is unlikely that the company will issue you a 1099 for $465.

However, you should still report the total amount that was owed to you of $465 on your return.

You can deduct the cancellation fee as a business expense on your return.

To enter the income without a 1099, do the following:

Go to Wages & Income
Select Self-Employment
In the "COMMON INCOME" section, choose "Other self employed income, includes cash and checks", since you do not have a 1099
In the "Expenses Category", enter the cancellation fee amount

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