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Just realized my 1099-NEC forms have been wrong for two years
I was going through old tax files last night and noticed my 1099-NEC from a client in Austin only reported $8,200 but I invoiced them for $11,500 total... turns out they only reported payments through June and forgot the rest. How do you all catch errors like this without reading every single line against your bank statements?
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jana5092mo ago
HOLD UP they included a late payment from the previous year?!
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faith272mo ago
Just realized" hits close to home because I used to do that exact same thing every year. The easiest way to catch errors is to compare your total deposits from each client against their 1099 amount, not the invoice total. On one form I had listed $3,200 extra because they included a late payment from the previous year, so you really have to match the money that actually hit your bank.
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jennybailey2mo ago
Totally feel you on that one @faith27... it's such a sneaky mistake when you're just trying to get it all done. I've had a couple years where I had to go back and recheck everything because the numbers just didn't add up, and it's always the deposits that tell the real story. The bank statement never lies, right? It's a pain but way better than getting a letter from the IRS later.
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