Multiple 1099-MISC for same income

Forum|Forum|5 years ago
February 2, 2021
3 replies
58 views

I won a giveaway in 2020 and was given some prize money. The giveaway was sponsored by a company, but it was ran by another company. I got a 1099-MISC from both companies, and I don't know how I'm supposed to enter these. If I enter both of them, then it will add the extra amount to my AGI, and I'll be paying double tax.

How would I go about reporting both of these on my tax return?

Best answer by KrisD15

Since the IRS gets copies of the 1099-MISC, I suggest you enter both as they are reported.

AFTER you enter them both, follow the steps below to make the adjustment.

Click Federal on the left side-bar

Click Wages & Income along the top

Scroll down to the last section Less Common Income and click Show more to open drop-down

Scroll down to last section Miscellaneous Income and click Start

Scroll down to the last section Other reportable income and click Start

Enter the description as “received duplicate 1099-MISC” and the amount as a negative number (be sure to make it negative)

This negative amount will be entered on line 21 to offset one of the 1099-MISC

KrisD15Answer

Alumni - Intuit

Since the IRS gets copies of the 1099-MISC, I suggest you enter both as they are reported.

AFTER you enter them both, follow the steps below to make the adjustment.

Click Federal on the left side-bar

Click Wages & Income along the top

Scroll down to the last section Less Common Income and click Show more to open drop-down

Scroll down to last section Miscellaneous Income and click Start

Scroll down to the last section Other reportable income and click Start

Enter the description as “received duplicate 1099-MISC” and the amount as a negative number (be sure to make it negative)

This negative amount will be entered on line 21 to offset one of the 1099-MISC

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ahpollo25Author

Level 2

Will there be a penalty for using a negative number in this field? Will the IRS see it and question it?

ToddL99

Alumni - Intuit

No, you won't be penalized by using an adjusting entry to prevent double-counting income.

The IRS may send you a notice asking for additional details (or proposing additional tax), at which time you can send them the information that justifies your adjusting entry.

Report both 1099-MISCs on you return, just as they were sent to you. Use the 1099-MISC interview found in Other Common Income.

Enter the 1099-Miscs in the Other Common Income  section (Enter "1099 misc" in the Search Box and Select "Jump to 1099 misc form")
For "Description", enter "Contest Prize"
Also check that it does not  involve work like your main job, that it  did  not  involve an intent to make money, and is not  a recurring payment (received in the past or expected in the future) 
The income will be reported on line 8 of Form 1040 of your return (Other income from Schedule 1, Line 9).

To enter the "adjusting entry":

Go to Less Common Income, Miscellaneous Income and Other reportable income. Enter "Lawsuit settlement" in the Search Box and Select "Jump to lawsuit settlement" to get to this screen
Continue to the screen "Other Taxable Income". Enter the description as "Contest Prize Duplicate 1099MISC" and the amount as a negative number. Entering "- $ XXXX" here will offset the duplicate amount on the Form 1099-MISC. These are NOT wages.

A corresponding negative amount will be entered, and line 8 of Schedule 1, will be zero.