1099 Misc

Forum|Forum|1 year ago
February 20, 2025
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I rec'd a 1099 Misc. for winning a fishing tourney where the prize included a boat and cash. The entire value of the boat was given to me, however i have a partner that agrees to split the value in one half. The IRS calls me a nominee recipient. I issued my own 1099 Misc. listing me as the payor and my partner as the recipient for 1/2 of the boat value.

How do I enter the second 1099 Misc, as I need to show a reduction to my income for 1/2 of the boat to adjust my income/winnings?

PatriciaV

Employee

When you enter Form 1099-MISC (under Other Common Income), input the total amount from Box 3 as shown on the form. Continue to the page "Does one of these uncommon situations apply?" and check the box for "This was prize winnings." This selection will open a box for you to enter the portion reported to your partner as a positive number.

You can see this on Schedule 1. The prize winnings will appear on Line 8(i) and the offset will be on Line 8(z) as an "adjustment" that lowers your taxable income.

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