Tax Form Corrections

How to Correct a 1099-NEC

Two Types of Corrections

Type 1: Wrong amounts • Type 2: Wrong name/TIN

Money errors use Type 1 (one corrected form). Name/TIN errors use Type 2 (zero out the wrong form, then file a new one). Correct errors promptly to avoid penalties.

Made a mistake on a 1099-NEC? Don't panic. This guide walks you through exactly how to correct or void forms, with examples for common scenarios.

When Do You Need to Correct a 1099-NEC?

Different errors require different correction types:

Error Type	Correction Method	Severity
Wrong amount in Box 1	Type 1 Correction	Common
Typo in recipient name	Type 2 Correction	Common
Wrong TIN/SSN	Type 2 Correction	Critical
Wrong recipient address	Type 2 Correction	Minor
Filed for wrong recipient	Void + New form	Critical
Shouldn't have filed at all	Void only	Critical
Missing state information	Type 1 Correction	Minor

Type 1Correcting Money Amounts

Use Type 1 when you reported the wrong dollar amount but the recipient information (name, TIN, address) is correct.

Prepare a new 1099-NEC

Fill out all boxes exactly as corrected

Mark as CORRECTED

Check the 'CORRECTED' box at top of form

Enter correct information

Put the RIGHT amounts in all money boxes

File with IRS

Submit corrected Copy A to IRS

Send to recipient

Provide corrected Copy B to the recipient

Type 1 Example:

You filed a 1099-NEC showing $5,000 paid to John Smith, but you actually paid him $6,000.

Solution: File a corrected 1099-NEC with "CORRECTED" checked, showing $6,000 in Box 1. Keep John Smith's name and TIN the same.

Type 2Correcting Name or TIN

Use Type 2 when you need to correct the recipient's name, TIN, or both. This is a two-step process.

File form with ZEROS

Prepare 1099-NEC with original WRONG info but $0 in all money boxes, marked CORRECTED

File NEW form

Prepare a second 1099-NEC with the correct name/TIN and correct amounts (NOT marked corrected)

Submit both to IRS

File the zeroed corrected form AND the new form together

Notify recipient

Send both forms to the recipient with explanation

Type 2 Example:

You filed with SSN 123-45-6789 but the correct SSN is 123-45-6780.

Solution:
1. File: CORRECTED form with wrong SSN (6789), $0 in Box 1
2. File: Regular form (NOT corrected) with right SSN (6780), $5,000 in Box 1

Common Correction Scenarios

Scenario: Reported $5,000 but actually paid $6,000

Type 1 Correction: File corrected form showing $6,000

Check CORRECTED box, enter $6,000 in Box 1

Scenario: Misspelled recipient's name

Type 2 Correction: Zero out wrong form, file new form with correct name

1st form: Wrong name, $0, CORRECTED. 2nd form: Correct name, $5,000, NOT corrected

Scenario: Used wrong SSN/TIN

Type 2 Correction: Zero out wrong TIN form, file new form with correct TIN

Critical: IRS matches TINs to tax returns

Scenario: Filed 1099 to wrong person entirely

Void the incorrect form, file new form to correct person

Void form for wrong person. New form for right person.

Scenario: Contractor was actually under $600

Void the form (shouldn't have filed)

File corrected form with $0 and VOID written on it

How to Void a 1099-NEC

Use a void when you shouldn't have filed a 1099 at all (wrong person, under $600, etc.):

1.Prepare a new 1099-NEC with the ORIGINAL recipient information
2.Check the "CORRECTED" box
3.Enter $0 in Box 1 (and all other money boxes)
4.Write "VOID" clearly on the form
5.File with IRS and send copy to recipient

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Frequently Asked Questions

What's the difference between Type 1 and Type 2 corrections?

Type 1 corrections fix MONEY errors (wrong amounts). You just file a corrected form with the right amounts. Type 2 corrections fix IDENTIFICATION errors (wrong name, wrong TIN). These require filing a form with $0 to cancel the wrong record, then a new form with the correct info.

How do I void a 1099-NEC?

To void a 1099-NEC, file a corrected form with $0 in all money boxes and the original (wrong) recipient information. Check the CORRECTED box and write 'VOID' on the form. This tells the IRS to disregard the original filing.

Is there a deadline for correcting 1099s?

There's no specific deadline for corrections, but you should correct errors as soon as you discover them. If you correct within 30 days of the original due date (January 31), you may avoid penalties for incorrect information. Filing corrections promptly also helps the recipient with their tax return.

Will I be penalized for filing a corrected 1099?

Not necessarily. If you correct errors promptly and in good faith, the IRS typically doesn't penalize you for corrections. Penalties usually apply only if the original error was due to intentional disregard or if you fail to correct known errors.

Do I need to notify the recipient about the correction?

Yes. You must provide the corrected Copy B to the recipient. For Type 2 corrections, send both the voided/zeroed form and the new form, along with an explanation. The recipient needs these for their tax records.

Can I correct a 1099 from a previous year?

Yes, you can correct 1099s from previous years. Use the form version for that tax year. File the correction as soon as you discover the error. Both you and the recipient may need to amend tax returns if the correction significantly affects reported income.

What if I filed electronically? How do I correct?

If you e-filed, you can also e-file corrections. Most e-filing systems have a correction option. You'll need to use the same transmitter and include the original receipt/confirmation number. Paper corrections are also accepted for e-filed originals.

What if the recipient gave me the wrong information?

If the error was due to information the recipient provided (like an incorrect SSN), keep documentation showing you relied on their W-9. You should still correct the form, but you may have a 'reasonable cause' defense if the IRS assesses penalties.