If you believe the information on your Form 1099-K is incorrect, was issued in error, or you have a question relating to the form, you should take the following steps:
- Contact the Filer: Reach out to the filer whose name and contact information appear in the upper left corner of the form. If you do not recognize the filer, contact the payment settlement entity whose name and phone number are shown in the lower left corner of the form above your account number.
- Request a Corrected Form: If necessary, request a corrected Form 1099-K from the filer. Keep a copy of the corrected form and any correspondence with the filer or the payment settlement entity for your records.
- Report the Error on Your Tax Return: If you cannot get the form corrected in time to file your tax return, you can zero out the error when you file your return. Report the amount on Schedule 1 (Form 1040), Additional Income and Adjustments to Income, as follows:
- Part I — Line 8z — Other Income: Enter the error with a description such as "Form 1099-K Received in Error" and the incorrect amount.
- Part II — Line 24z — Other Adjustments: Enter an offsetting entry with the same description and amount to nullify the error.
- For example, if you received a Form 1099-K for $11,000 that was actually a reimbursement from your roommate for their share of rent, you would report:
- Part I — Line 8z: "Form 1099-K received in error, $11,000"
- Part II — Line 24z: "Form 1099-K received in error, $11,000"
- This results in a $0 net effect on your adjusted gross income (AGI).
- Keep Records: Maintain a copy of the incorrect Form 1099-K, any corrected forms, and all related correspondence for your records.
By following these steps, you can ensure that the incorrect information on the Form 1099-K does not affect your tax return.
Sources:
Publication 1220 (9/2023)
Notice 2023-10
FS-2023-6
FS-2024-3
FS-2023-7
