If I received a 1099-misc instead of a 1099-nec, does that have to be corrected?

[jennie_f]

I worked as an independent contractor and should have received the new 1099-nec form for that but they issued a 1099-misc and entered the amount under the "general" box. I am a personal fitness trainer and I assume they might have used the MISC form to be able to deduct the cost as health or medical expenses. 

Do I have to request a change to NEC or can I just enter the 1099-misc? Thanks!

[AmyC]

Contact the issuer.  The issuer must follow the rules or they may end up with a penalty. If you should have a 1099NEC, the issuer will want to correct their mistake and issue a corrected 1099MISC with no income and a 1099NEC with the correct income.  You can share the following:

The 1099-NEC is for each person to whom the taxpayer has paid at least $600 during the course of a business for the following.

•Services performed by someone who is not an employee, including parts and materials (box 1),

•Cash payments for fish (or other aquatic life) purchased from anyone engaged in the trade or business of catching fish (box 1), or

•Payments to an attorney for legal services (box 1).

The Form 1099-MISC is for each person to whom the taxpayer has paid the following during the course of a trade or business.

•At least $10 in royalties or broker payments in lieu of dividends or tax-exempt interest,

•At least $600 in rents (box 1), prizes and awards (box 3), other income payments (box 3), the cash paid from a notional principal contract to an individual, partnership, or estate (box 3), any fishing boat proceeds (box 5), medical and health care payments (box 6), crop insurance proceeds (box 9), payments to an attorney (box 10), IRC section 409A deferrals (box 12), or nonqualified deferred compensation (box 14).

•Any payment from which federal income tax has been withheld (box 4) under the backup withholding rules

[jennie_f]

Thanks so much! I will reach out to them. 

[bhunivelze]

What if my issuer doesn't respond in time? Do I just use NEC instead? In my case its Google & a few other very large corporations so its tough hearing back from them. 

[VolvoGirl]

For self employment income you don't need to get the 1099.  Actually you can just enter it as Other self employment income or as Cash or General income. You don't need to get a 1099NEC or 1099K. Even if you did you can enter all your income as Cash. Only the total goes to Schedule C.  

[sheltie1189]

@VolvoGirl is there any reason there would be a benefit to doing it that way?

[VolvoGirl]

No difference if you enter the 1099NEC or just enter it all as Cash or General.  Only the total of 1099NEC & cash goes to Schedule C line 1.  Doesn't matter how you enter it as long as the total is the same or more than the 1099NECs you got.

[Tmil3467]

So after the 1099 NEC is received do you have to file an amendment to correct this? 

[LindaS5247]

Have you already filed your Income Tax Return?

Don't amend if:

• You haven’t e-filed or mailed your return yet. Just open your return, make any changes, and file when you're ready. If you already printed your return, follow these steps to make changes
• Your tax return hasn't been processed yet or your e-filed return is still pending. Wait until the return is accepted before amending

If the 1099-Misc & 1099-NEC report the exact same info you do not have to amend your tax return.

If the new information does not affect your taxable income or income taxes, and there is no need for you to file an amended return.  Do keep both forms with your other 2022 tax records, because due to the IRS matching system, you may receive a notice.  If this does happen, you can respond with a simple letter that states that the amendment does not affect your taxable income so no amended return was filed and send that back with a copy of your new tax form.

Click here for IRS" Should I File an Amended Return:" and click on Begin

Click here for information regarding filing an amended return.

[Tmil3467]

Yes I filed already and got a letter saying I was selected for  verification for: income, income tax withholding, tax credit or business income and no action is needed right now. Also this is my 1st year filing.