April 23, 2013

Correcting a Form 1099-MISC

Question:

How does a church correct a previous year's Form 1099-MISC which erroneously listed housing allowance in box 7 "Non-Employee Compensation?"

Answer:

Unlike the Form W-2, there is no separate form to correct an erroneously distributed Form 1099-MISC. Instead, a Form 1099-MISC should be prepared reporting the correct amounts, and the "Corrected" box should be checked on the top of the form.

As for the housing allowance, simply reduce the amount in box 7 by the amount of designated housing allowance, up to and including the full amount originally reported in box 7. Be aware that this may result in a zero being entered in box 7 if the full amount was designated as housing allowance.

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