What if I receive an incorrect Form 1099-NEC?
Contact the payer and ask for a corrected Form 1099-NEC. The IRS receives a copy of all Form 1099-NECs from the payer. If the amount you report on your tax return doesn't match the amount the IRS received record of, 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-NEC is less than what it should be, you should enter 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-NEC income.
For example, if your Form 1099-NEC reports $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-NEC reports $200 of income, 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-NEC in a timely manner, you have several options. For example, if the Form 1099-NEC is being reported on a Schedule C or F, you could:
Should I receive a 1099-NEC or 1099-MISC?
What if I receive an incorrect 1099-MISC?
However, if the amount on the Form 1099-NEC is less than what it should be, you should enter 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-NEC income.
For example, if your Form 1099-NEC reports $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-NEC reports $200 of income, 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-NEC in a timely manner, you have several options. For example, if the Form 1099-NEC is being reported on a Schedule C or F, you could:
- Enter the income as reported on the Form 1099-NEC.
- Enter the amount of income that is not correct as a miscellaneous expense. The description could be "1099-NEC Adjustment," or something similar.
- Prepare your own statement explaining why the income you are reporting is different than what is on your Form 1099-NEC.
- Enter only the correct income in the software.
- Choose to mail your tax return instead of e-filing. You would include the statement you prepare as part of your mailed tax return.
Should I receive a 1099-NEC or 1099-MISC?
What if I receive an incorrect 1099-MISC?
