Do i still file a 1099-misc for my contractor with negative income?

[wanj]

Trying to file a 1099 misc for someone who used to work for me, but they quit even before they started working, said will pay back the amount that i spent on them (health exam, entry class, etc), but never did. 

Do i file a 1099 misc for them with a negative income? If yes, how? If no, what do i do in this case?

[Opus 17]

If you paid them more than $600 in 2017 you file the 1099-MISC showing what they actually were paid.

If they repay you in 2018, they can make an adjustment on their tax return for that, and you would include that as revenue on your 2018 return.