JackieCPA Posted February 24, 2021 Report Posted February 24, 2021 Everyone's tax season has been fantastic I hope! I have a client who sued the credit reporting agencies for some discrepancies. Received a 1099MISC from Experian and Equifax for the full amount, he also received a 1099MISC from the lawyer who collected the amount, deducted his fees, then gave my client the money. He gave them a 1099MISC for the net amount. So he really is doubling up on money if I put all three 1099s on their tax return. I had him inquire with the lawyer, who told them that he was required to also 1099 them for the amount. My plan was to put all three 1099s on the return, then also list on the schedule 1 other income for the negative amount of the lawyers 1099s saying 1099MISC error. Does that seem like something that would work? Quote
Yardley CPA Posted February 24, 2021 Report Posted February 24, 2021 In addition to the negative number on the "Other Income" line, can you attach an explanation to the return describing the situation and the reason for the negative number? Quote
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