Crypto exchange under-reported income on Form 1099-MISC

[si29xnm]

A crypto exchange sent me a 1099-MISC (more than 1.5 month late), and they didn't include an asset transfer bonus that they gave me in 2025. I contacted them to fix it, but I doubt they would fix it by April 15.

The form states:

Form 1099-MISC incorrect? If this form is incorrect or has been issued in error, contact the payer. If you cannot get this form corrected, attach an explanation to your tax return and report your information correctly.

It says "report your information correctly," so I guess I will just enter the correct amount for 1099-MISC.

But how do I "attach an explanation to your tax return"?  Do I add the "Blank Form" under the Form view (I'm using TurboTax Desktop) and provide my explanation there?  The Help Center page for the Blank Form does say that it won't be submitted if you e-file, though. I'd really like to avoid having to mail it.

[CesarJ · Accepted solution]

In TurboTax Desktop, you can add a "Blank Form" and type your explanation, but note that this form doesn't get submitted when e-filing. The IRS won’t see your attached explanation electronically if you e-file.

If the IRS requires a written explanation, you typically must mail it with your paper return. TurboTax e-file doesn't support submitting additional attachments like explanations.

In your case, if the payer underreported income on your 1099-MISC, as long as you report the right income amount on your return you  are fulfilling your tax reporting requirement. 

By reporting all the income you are compliant and aren't required to send an written explanation and can e-file your return. 

To report income that is not self-employment income and not reported on a 1099-MISC in TurboTax Desktop, follow these steps:

1. Go to the Federal Taxes section, then Wages & Income.
2. Scroll to Other Common Income and select Start next to Form 1099-MISC or Miscellaneous Income.
3. Enter the income amount manually with accurate details.
4. When asked about the source, select the appropriate option indicating it is nonbusiness income.
5. Follow the prompts to clarify that this income is not related to self-employment.

This method allows you to report miscellaneous income correctly in TurboTax Desktop without a 1099-MISC form or self-employment classification.