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Level 1
posted Apr 12, 2022 6:48:09 PM

1099-NEC with $0 Nonemployee Compensation

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!

0 2 2001
2 Replies
Level 15
Apr 12, 2022 7:03:45 PM

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

Expert Alumni
Apr 12, 2022 7:11:02 PM

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