Is it legal for a company to issue a 2099-MISC and a 1099-NEC to the same person?

[Callhd]

My daughter is a Massage Therapist and works for a Spa that has issued her a 1099-NEC and a 1099-MIS.

[Opus 17 · Accepted solution]

You'll need to provide more information.  For self-employed/contract work, such income used to be reported on  a 1099-MISC in box 7, but that was replaced with the new form 1099-NEC for 2020.  So it would depend on what happened.  Did they report the same income twice, once on the old form and once on the new form?  Or did they report different income streams differently?  Did they report something else in a different box of the 1099-MISC?  If she is a regular employee and receives a W-2, then all her income from that employer must be reported on the W-2, even bonuses and prizes.  

[Callhd]

Hi

The owner of the spa said she changed accounting software and one issued the MIS and one a NEC.  Safe work for the same company.  The amounts are different.

I suggested she send a corrected form but she said she had already submitted both to the IRS.  

If it is legal I have no problem entering them and submitting.

Thanks so very much for helping me figure this out.

[Opus 17 · Accepted solution]

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@Callhd wrote:

Hi

The owner of the spa said she changed accounting software and one issued the MIS and one a NEC.  Safe work for the same company.  The amounts are different.

I suggested she send a corrected form but she said she had already submitted both to the IRS.  

If it is legal I have no problem entering them and submitting.

Thanks so very much for helping me figure this out.

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If the combined total is correct, then you can enter them both, the owner is just wrong.  I expect many businesses are getting it wrong this year.  However, if you have a 1099-MISC with work earnings in box 7, you will have to enter it as if it was a 1099-NEC.  Turbotax won't accept box 7 work income any more. 

[Callhd]

Thanks for the concise answer.  The 1099-MIS has the income in box 3 other income.  The 1099-NEC has it in box has it in box 1 Nonemployee Compensation.

I feel much better hitting the transmit button.

[Opus 17]

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@Callhd wrote:

Thanks for the concise answer.  The 1099-MIS has the income in box 3 other income.  The 1099-NEC has it in box has it in box 1 Nonemployee Compensation.

I feel much better hitting the transmit button.

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But what is the box 3 income?  That would have to be some type of income not related to providing massage or other spa services.  Typically box 3 is used for contest prizes, or for other types of income not relating to providing goods or services.  If it is also income for providing massage or other spa services, it would have to be included on the schedule C, and not on schedule 1 as "other income", even though it is in box 3. 

[Callhd]

Hi Champ,

The incomes on both are for the same massage type work.  I think the owner needs to cancel the 1099-MIS and reissue it as a 1099-NEC.  We will see what she does.  Thanks