My 1099-NEC is being amended to $0. Can I just pretend I never got one in the first place?

[JeffSPL311]

I have not filed yet. I received a 1099-NEC for over $1000, but the employer just said on advice of their accountant they do not have to file the 1099-NEC. I don't care if this is right or wrong. The employer said they are zeroing out the 1099s. Let's assume I receive an amended 1099-NEC for $0 income in the next few days...

1. Can I just pretend I never got a 1099-NEC from them in the first place, OR do I have to input both the original and the amended 1099 in TurboTax?

2. Should I continue to use the Schedule C that TurboTax created for this income and just include the sum I received from them in the other income field, OR should I report it on my 1040 as other income?

Thank you in advance!

[DawnC · Accepted solution]

If you receive a corrected 1099-NEC with $0 income on it, then yes, you can pretend as if you never received it.   You are not required to report a 1099-NEC with $0 income.  Keep it with your tax records in case you receive an inquiry later.   But you do need to report the income as Other Income if in fact you did receive the income and it was not self-employment income.   

If it is not self-employment income - do not report it on Schedule C - report it on Form 1040, Line 8 Other income.    If you want to provide some more details, someone can clarify how to report the income here.   How much income did you actually receive, and what was it for?   In your question #2, you ask if you should report it as other income on Schedule C as ''other income''.   Please note if you do this, it is the exact same as reporting the original 1099-NEC.   

There is difference between Other Income on Schedule C and Other Income on Form 1040.  One is considered self-employment and the other is not.  They both will generate ordinary income tax but only the Schedule C income will generate the Self-Employment tax.   If it is not self-employment, it should not be on Schedule C.  

[JeffSPL311]

Thank you! Part 1 solved!
As for part 2, where to report... It's not clear to me the what defines self-employment when it comes to 1099 or 1099-like income. Here is my particular situation:

I am an online game show host. It is a contract position. I get scheduled to host games by the game show company and at the end of each week I submit an invoice for the games that I've hosted. I use my own computers, lights, backgrounds, etc. I log on to the company's system to host the games.

None of the equipment I use was bought just for hosting, so I can't really write anything off as expenses against a Schedule C business, so there is no incentive to go the Sched C route from that perspective. But maybe it's not a choice and I would have to go that way anyway?

So is that enough info to make a determination of self employment (schedule C) vs other income (1040)?

[VolvoGirl]

That is self employment income and goes on Schedule C.  Wonder why they are reversing the 1099NEC?  They have to give you one for $600 or more.  

[JeffSPL311]

Can I ask what part of my situation leads you to conclude it's Sched C income vs 1040 Other income? I mean, someone is always paying you for something right?, so what kind of income qualifies as 1040 Other income?

[JeffSPL311]

Nevermind, I looked it up myself. I guess it's the frequency with which I do it... several times a week for over 6 months now... demands that it be on a Schedule C.

[VolvoGirl]

If you got paid for work even for 1 day you are self employed.  Here are a couple links

Here is a Turbo Tax FAQ Are you an employee or self employed?

https://ttlc.intuit.com/community/self-employed/help/am-i-an-employee-or-an-independent-contractor/0...

Are you self employed?

https://ttlc.intuit.com/community/self-employed/help/am-i-considered-self-employed/00/26535

[DawnC]

Yes, it goes on Schedule C - you can just enter the 1099-NEC and link it to the Schedule C, so you don't need a corrected form.