I received a 1099 by mistake - cannot get payer to correct - what to do when I file

[don21480]

I received a 1099 that was intended for someone else - the payer just won't take the time to correct it. How do I file my taxes with this outstanding?

[ColeenD3]

You can enter a nominee adjustment and attribute it to the person it belongs to. 

The type of 1099 you received determines the method you would use to do this.

[don21480]

Thank you - its a 1099-Misc. I do not know the information for the person it belongs to. I'm a songwriter and the 1099 is for a royalty on a song I did not write nor did I receive the royalty. 

[ColeenD3]

The only other option is to zero it out with a negative entry, but you may receive a communication from the IRS and you will have to explain what happened. Enter the 1099-MISC and then back the amount out with other income.

To enter a 1099-MISC for miscellaneous income in TurboTax:

1. Open or continue your return
2. Search for 1099-misc and select the Jump-to link
3. Answer Yes to Did you get a 1099-MISC?
   • If you already entered a 1099-MISC, you'll be on the 1099-MISC Summary screen, in which case you'll select Add Another 1099-MISC
   • If you need to edit or delete a previously entered 1099-MISC, select the appropriate button
4. Enter the info from your form into the corresponding boxes
   • If you need to enter boxes 4–6 or 8–17, check My form has other info in boxes 1–17 to expand the form

Boxes 1 and 2 missing from your 1099-MISC screen? Go back to the main 1099-MISC screen using the steps above.

Other Income (negative entry)

• Federal Taxes ->
• Wages & Income ->
• I'll choose what I work on -> scroll to the bottom and under 
• Less Common Income select Start (or Update) for 
• Miscellaneous Income
• Other reportable income and you can enter your own description(s) and amount(s).

[don21480]

Thanks again - its not a lot of money so I may just enter it and move on rather than attract attention. Paying the tax on this income might be less than the hassle of trying to correct it at this point. Thanks so much!

[AnnetteB6]

If you are in the business of songwriting and you file a Schedule C as part of your tax return, include the 1099-MISC for the royalty as part of your business income.  Then, you can claim a miscellaneous business expense to negate the income reported to you in error.

If you are no longer active in the business of songwriting, then the royalty income would be reported on Schedule E using the following steps:

• On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
• This opens a box where you can type in “royalties” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
• The search results will give you an option to “Jump to royalties”
• Click on the blue “Jump to royalties” link

 Answer Yes that you need to report rental or royalty income and then skip the first question or so because they will pertain to rental properties and not royalties.  You will come to a screen titled, “Is This a Rental Property or Royalty?” where you can choose Royalty.  You will need to enter a short description for the type of royalty and include an address for the royalty.  Use your own address or the address of the property generating the royalty (such as when a property is generating a royalty).  Continue moving forward until you get to a summary page for the royalty.  Here you can select Start or Update beside Royalty Income to enter the income amount. 

@don21480

[don21480]

thank you!