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February 3, 2023
Question

I received a 1099-NEC from a company and I in turn issued a 1099-NEC for the same amount to my employer. How do I equal this out so I don't pay self employment taxes?

  • February 3, 2023
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1 reply

February 3, 2023

Why did you issue a 1099-NEC to your employer?  Should the 1099-NEC have gone to your employer instead of you?  Were you an independent contractor?  Who was paid?

 

If you were paid by the company that issued the 1099-NEC and then you paid your employer the full amount, you could enter your 1099-NEC, then in the business expense section, enter the amount in commissions or finders fees to remove the income. This will generate a Schedule C with the income, then showing the payment to your employer as a deduction and will account for the income coming and going. 

 

The best thing to do is to contact the company and have them issue the 1099-NEC directly to your employer if they paid your employer. 

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