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Received two 1099-MISC for one Sweepstakes Prize

I won $1,000 worth of points from a sweepstakes ran by Hello World sponsored by Samsung. Both Samsung and Hello World each sent me a 1099-MISC for $1,000 which makes it look like I got $2,000 in total. I have contacted Hello World who told me to only file my taxes with their 1099 and that Samsung would send a corrected 1099. I never received a corrected 1099 from Samsung. Should I pretend I didn't get a 1099 from Samsung and only file the 1099 from Hello World? Or should I report both 1099 and mark Samsung's 1099 as $0? Or should I report both 1099 and somehow indicate somewhere that Samsung's 1099 is $0?

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Received two 1099-MISC for one Sweepstakes Prize

Just to save hassles later I would enter both and do a "reversing entry" for the incorrect 1099 by making a third Sch 1 line 8  simply negating the incorrect amount ...

 

Reporting this in TurboTax will be a two-step process, first to include the 1099-MISC as income and then to make a negative adjustment to remove it. 

 

To include the 1099-MISC as a part of your tax return, follow these 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 “1099-MISC” (be sure to enter exactly as shown here) and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
  • The search results will give you an option to “Jump to 1099-MISC"
  • Click on the blue “Jump to 1099-MISC” link
  • Answer Yes you did receive a 1099-MISC
  • Fill in the details from your 1099-MISC then click Continue
  • Provide a short description for the reason you received the 1099-MISC then click Continue
  • On the next screen titled, “Does one of these uncommon situation apply?” choose the last option, None of these apply and then click Continue
  • On the next screen asking if the 1099 involved work like your main job, answer No and click Continue
  • On the next screen, check the box that you received the income in 2020 and then click Continue
  • Finally, choose “No, it didn’t involve an intent to earn money” and click Continue
  • Answer the questions on the next couple of screens to finish the process

Now the income shown on the Form 1099-MISC has been added to your return.  Next, it will be “removed” from the return.

Follow these steps:

  • Go to Federal Taxes > Wages & Income and scroll to the bottom of the screen to the Less Common Income section (expand the section by clicking Show More if necessary)
  • Click Start or Update beside Miscellaneous Income, 1099-A, 1099-C
  • Scroll to the bottom of the list and click Start or Update beside Other Reportable income
  • Answer Yes to move forward
  • Enter a brief description, such as “settlement refund adjustment,” and the amount reported on the 1099-MISC as a negative number then click Continue
  • Click Done

When you see your Form 1040 Schedule 1, the amount shown on the Form 1099-MISC will be reported twice on line 8 – once as a positive amount and once as a negative amount. 

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