Incorrect 1099 Wages

[julie-a]

What should I do if my boss knowingly issued a 1099 overstating my wages? I asked for them to correct it and they have not done so. They have treated company expense reimbursements as taxable income. The overstatement definitely affects my tax returns. How should I address this on my tax return? Can I report them for misrepresenting my income? 

[Jackstar221]

Hi, 

To address the 1099 on your tax return, report the amount that is shown on the 1099 form. You can ask for a corrected 1099 form from your boss to try to get it fixed before the 10/15/24 extension deadline.

You can file a complaint with the IRS using Form 3949-A 

You may also contact the IRS directly by phone.

If the return needs to be amended later within TurboTax to enter a corrected form 1099, then it can be amended within the TurboTax software. Here is a TurboTax article regarding amending a tax return:

TurboTax How to File An Amended Tax Return with the IRS 

If you have an accountable plan, it should be tax-free. If you don't have an accountable plan, it should be on a W-2. An input will be made on Form 8919, and you will pay 1/2 of social security tax. Please refer to this thread response by Opus 17:

Employer gave me a 1099 for expense reimbursement instead of reporting it on my W2 

[julie-a]

I understand. So if the 1099 I received has the incorrect amount, I am to ignore that amount and put the actual correct amount on my return? They will not match. Do I print a different 1099? Will this cause issues? I can file a complaint. What if the boss never corrects the 1099 to reflect the true amount?

[Jackstar221]

Hi,

No, please enter the 1099 amount on the return, as it is shown on the 1099 that the boss provided to you.

If the boss provides you a corrected 1099, you can amend later.

Perhaps the boss will give you the corrected 1099 before the 10/15/24 extension deadline, so I suggest holding off on filing the return until then. You can discuss this directly with the IRS by phone, or by using IRS Form 3949-A 

[TomD8]

@julie-a --

Note this IRS rule:

If the individual is considered an independent contractor and does not properly account to the
payer for reimbursed expenses, then any advances or reimbursements are to be included on a
Form 1099-MISC as taxable nonemployee compensation, along with other payments for their
services.

https://www.irs.gov/pub/irs-pdf/p5137.pdf