Accidentally sent contractor 1099 form that included a future payment

Forum|Forum|2 years ago
January 30, 2024
1 reply
0 views

I accidentally included a future payment in my contractor's 1099 for 2022, but I didn't send the money until 2023. I didn't realize it until I went to put my 1099 forms together for 2023 and my contractor said her totals were off. My question is since I'm guessing she's already paid taxes on it (assuming she used the number I provided her last year), does she still include it this year? What do I put on my 1099 to her for 2023? I don't think I included it in my taxes for 2022 so I'll need to count it as an expense for 2023. It was just on the 1099 I sent her.

Not A Product Question

DianeW777

Accuracy is key. Send a corrected 1099-NEC for 2022, and then complete the 2023 correctly. It may be an inconvenience to your contractor, however it's important your records are accurate and complete.

And if your contractor did not report the excess based on tax law for constructive receipt, meaning they report the income when it is received, then an amended return would not be required for them.

Use the links below and remember to check the 'Corrected' box. Mail them to the IRS address shown on the Form 1096.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"