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Level 1
April 13, 2022
Question

1099-NEC with $0 Nonemployee Compensation

  • April 13, 2022
  • 2 replies
  • 0 views

Trying to do my son's taxes. He worked for the college he is attending and he received a W-2 for that work. He also participated in a summer internship last summer for the same university (same Employer Identification No.) and was sent a 1099-NEC reporting money that was given to interns as "A $70.00 per week food reimbursement". A few weeks later he was sent a corrected 1099-NEC with box 1- nonemployee compensation listed as $0, as he shouldn't have been sent one in the first place. My question is if I report that he received the 1099-NEC and list the compensation as zero TurboTax is asking me all kinds of questions regarding his "business", Schedule C, etc. Do I need to put the 1099-NEC in his taxes. How do I answer questions regarding his "business" which doesn't exist? Help!

2 replies

Level 15
April 13, 2022

Since the corrected form shows zero income you can ignore it. The IRS will receive the same corrected form. 

KrisD15
Level 15
April 13, 2022

No

since the corrected 1099-NEC shows no income, don't enter ether one. 

The school have to file the corrected one so that the IRS would not look for the first one that was issued. 

 

@tadau 

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