Multiple 1099-MISC for same income

[ahpollo25]

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?

[KrisD15 · Accepted solution]

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

[ahpollo25]

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

[ToddL99]

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.