1099

[gmcgann]

A friend of mine is a musician. I talked to a bar owner I know and got him a gig. The bar manager wrote the check to me instead of him. That happened twice. Both times I cashed the check and gave him the money. Now I have a 1099 and Turbo tax is asking me all kinds of questions about my "business." How do I handle this?

[LaShaunA3]

Because the 1099 was issued in your name and SSN, that information has been reported as income to the IRS. You would need to report it

However, since you were acting as an intermediary and passed the full amount to the musician, you generally report the 1099 income and then offset it so you aren't taxed on money you didn't keep.

1. On your tax return, enter the full amount on the 1099 on Schedule 1 (Form 1040), Part I. Other income. 
2. Then, then enter the same amount as a negative “Nominee amount” so the 1099 is shown, but not taxed to you. 
3. Issue the same Form 1099 (MISC or NEC) to the musician. Show the same amount as the original 1099. 
   1. Make you the “Payer” and the musician “Payee,.” File Copy A with the IRS (and Form 1096 if mailing paper).