1099 does not reflect my refund to company

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
Kennedy
Posts: 369
Joined: Mon Nov 10, 2014 2:47 pm

1099 does not reflect my refund to company

Post by Kennedy » Mon Mar 04, 2019 2:49 pm

We received a 1099 for work my spouse did as an independent contractor. My spouse ended up refunding part of the retainer paid back to the company since the amount of the retainer paid was more than than eventual final billed amount.

However, the 1099 reflects the sum paid up front by the company to my spouse without subtracting the amount we refunded.

How do I account for this with regard to taxes? Do I request that the company send a corrected 1099, or do I take the amount refunded as an expense? This latter choice does not seem like it would be right since the refund was not an expense.

User avatar
8foot7
Posts: 1729
Joined: Mon Jan 05, 2015 7:29 pm

Re: 1099 does not reflect my refund to company

Post by 8foot7 » Mon Mar 04, 2019 2:51 pm

Either method will work.

jebmke
Posts: 9978
Joined: Thu Apr 05, 2007 2:44 pm

Re: 1099 does not reflect my refund to company

Post by jebmke » Mon Mar 04, 2019 3:51 pm

Why not use Line 2 of Schedule C? Returns and Allowances.
When you discover that you are riding a dead horse, the best strategy is to dismount.

User avatar
Artful Dodger
Posts: 808
Joined: Thu Oct 20, 2016 12:56 pm

Re: 1099 does not reflect my refund to company

Post by Artful Dodger » Mon Mar 04, 2019 4:48 pm

jebmke wrote:
Mon Mar 04, 2019 3:51 pm
Why not use Line 2 of Schedule C? Returns and Allowances.
+1

Post Reply