1099 sent to me instead of the agency I broker with

[Taxedguy2022]

I am an insurance agent/broker working for an insurance agency, all my commissions are paid to me through the agency. I am not a W2 employee and get a 1099 from the agency. This year I received a 1099 from one of the companies we did business with. The amount was already included in the 1099 I received from the agency. How do I zero out this entry so I do not have to claim the income twice?

[LenaH]

You would enter your 1099-NEC's and have one flow to a Schedule C and one flow to Other Income. Then, you will also make a manual entry in Other Income to deduct the amount of your 1099-NEC form with the description - "Income already reported on 1099-NEC (enter Payer TIN here) ". The net of all of these entries will be the amount of your 1099-NEC on your Schedule C. 

First - please follow the steps below to enter your Schedule C 1099-NEC: 

1. Open your return.
2. Search for 1099-NEC with the magnifying glass tool at the top of the page.
3. Click on the Jump to 1099-NEC link at the top of the search results. 
4. Click Add a 1099-NEC.
5. Enter the information as shown on your form. 
6. Describe the reason for the 1099-NEC.
7. On the screen Does one of these uncommon situations apply? answer None of these apply to me. 
8. Select the Schedule C business or add a new business on the page Self-employed 1099-NEC Income.

Next - please follow the steps below to enter your Other Income 1099-NEC:

1. Search for 1099-NEC with the magnifying glass tool at the top of the page.
2. Click on the Jump to 1099-NEC link at the top of the search results. 
3. Click Add a 1099-NEC.
4. Enter the information as shown on your form. 
5. Describe the reason for the 1099-NEC.
6. On the screen Does one of these uncommon situations apply? answer This is not money earned as an employee or self-employed individual, it is from a sporadic acitivity or hobby (this is not common).

Lastly - please follow the steps below to deduct the amount of your 1099-NEC:

1. Click on Federal on the left-hand side.
2. Scroll down to Less Common Income.
3. Click Start next to Miscellaneous Income.
4. Click Start next to Other reportable income.
5. Answer Yes to Any Other Taxable Income?
6. List description as "Income already reported on 1099-NEC (enter Payer TIN here)"
7. Enter the amount as a negative.

To confirm this was completed correctly, please follow these steps to see your federal forms:

1. Open your return.
2. Click on Tax Tools on the left hand side.
3. Click on Tools.
4. Click on View Tax Summary.
5. Click on Preview my 1040 on the left hand side.
6. Search for Schedule 1 - Additional Income & Adjustments to Income.
7. Go to Line 8z.
8. Line 8z should be your 1099-NEC with a positive and negative number, netting to zero. 

[Taxedguy2022]

Thank you so much... I will be doing my taxes throughout the week and will use this advice.

[Taxedguy2022]

Thank you for the response. 

I must be doing something wrong. 

Can you confirm for the steps from above?

I do the "First" Step

I do to the "Next"

This doubled the amount of tax on the 1099-NEC amount 

"Lastly" - Not sure where Federal on left side is, but I found Less Common Income and entered the negative amount (Was the Payer Tin the one from the errant 1099 or the agency 1099?

Then when I go to tool, tax summary, I cannot preview my 1040. I did open schedule 1 and looked at 8z. It does show a positive and negative amount but one of the original 1099s from "First" and "next" step is still being taxed.

[LenaH]

I noticed you are using TurboTax Home & Business. I will give you the steps for this TurboTax program (not the online version) and hopefully clear up any of your questions. 

First - please confirmed you entered your Schedule C 1099-NEC: 

1. Open your return.
2. Click on Personal.
3. Click on Personal Income. 
4. Click on I'll Choose what I work on.
5. Scroll down to Income from Form 1099-NEC.
6. Click Update.
7. Click Edit next to your 1099-NEC on the 1099-NEC Summary screen. 
8. Continue past the information entered. 
9. On the screen Does one of these uncommon situations apply? answer None of these apply to me. 
10. Select the Schedule C business or add a new business on the page Self-employed 1099-NEC Income.

Next - please follow to confirm you entered your Other Income 1099-NEC:

1. On the 1099-NEC Summary screen ( Step#7 above) , click Edit next to your second 1099-NEC.
2. Continue past the information entered. 
3. On the screen Does one of these uncommon situations apply? answer This is not money earned as an employee or self-employed individual, it is from a sporadic acitivity or hobby (this is not common).

Lastly - please confirm you deducted the amount of your second 1099-NEC:

1. Click on the Personal tab.
2. Click Personal Income.
3. Click I'll choose what I work on.
4. Scroll down to Miscellaneous Income. 
5. Click Update or Start.
6. Click Start or Update next to Other reportable income.
7. Answer Yes to Any Other Taxable Income?
8. List description as "Income already reported on 1099-NEC (enter Payer TIN here from second 1099-NEC)"
9. Enter the amount as a negative.

To confirm this was completed correctly, please follow these steps to see your federal forms:

1. Click on Forms.
2. Click on Schedule 1 on the left hand side. 
3. Go to Line 8z.
4. Line 8z should be your second 1099-NEC with a positive and negative number, netting to zero. 

@Taxedguy2022

[Taxedguy2022]

Thank you for your patience.

Now I'm lost...

I started over with Schedule C - Entered the 1099. My taxes owed increased $251.

I added the second 1099 following the directions. This increased my taxes owed by another $102.

I then entered Less common income as a mius amount. Taxes owed went back to a $251 increase.

8Z is correct. Other income shows 2 - 1099s one that I entered ad a business 1099 and the other following the instructions. 

My issue is my taxes should not increase at all as this is an errant 1099-Nec.

I'm sorry but can you give more guidance?

[ColeenD3]

The amount on Schedule C will increase your tax. You are reporting SE income and paying Federal and SE taxes on the income. That should be the 1099 from your own agency.

If you entered the other 1099 as directed and then put in a negative entry to zero it out, that is the income that should not appear. This is the incorrect 1099 from the other company.