What if I receive an incorrect Form 1099-MISC?
Contact the payer and ask for a corrected Form 1099-MISC. The IRS receives all Form 1099-MISCs from the payers. So if the amount you report on your tax return doesn't match the amount the IRS received from the payer, the IRS may make an adjustment to your tax return or send you a notice asking about the difference.
However, if the amount on the Form 1099-MISC is less than what it should be, then there's not a problem in going ahead and entering the correct amount of income on your tax return. The IRS will not send you a notice asking why you are reporting more income than the Form 1099-MISC income.
For example, if your Form 1099-MISC is for $200 of income, but you enter the correct amount of $250, the IRS won't care that you reported more income than they were expecting. However, if the correct amount is $100 and you enter $100, but the Form 1099-MISC is for $200, then the IRS would want to know why you aren't reporting the $200 on your tax return.
If the payer won't give you a corrected Form 1099-MISC in a timely manner, it gets more complicated. If the Form 1099-MISC is being reported on a Schedule C, E, or F, you could enter the income as reported on the Form 1099-MISC then enter the amount of income that is not correct as a miscellaneous expense and call it something like 1099-MISC Adjustment. Alternatively, you could choose to create a statement explaining why the income you are reporting is different than what is on your Form 1099-MISC, then choose to mail your tax return instead of e-filing it and include the statement as part of your tax return.
What if I receive an incorrect Form 1099-NEC?
However, if the amount on the Form 1099-MISC is less than what it should be, then there's not a problem in going ahead and entering the correct amount of income on your tax return. The IRS will not send you a notice asking why you are reporting more income than the Form 1099-MISC income.
For example, if your Form 1099-MISC is for $200 of income, but you enter the correct amount of $250, the IRS won't care that you reported more income than they were expecting. However, if the correct amount is $100 and you enter $100, but the Form 1099-MISC is for $200, then the IRS would want to know why you aren't reporting the $200 on your tax return.
If the payer won't give you a corrected Form 1099-MISC in a timely manner, it gets more complicated. If the Form 1099-MISC is being reported on a Schedule C, E, or F, you could enter the income as reported on the Form 1099-MISC then enter the amount of income that is not correct as a miscellaneous expense and call it something like 1099-MISC Adjustment. Alternatively, you could choose to create a statement explaining why the income you are reporting is different than what is on your Form 1099-MISC, then choose to mail your tax return instead of e-filing it and include the statement as part of your tax return.
What if I receive an incorrect Form 1099-NEC?
