I provided services for a contractor this last year and he sent me a 1099NEC for the payments, as he paid in Check form. However, I billed through HB and marked these payments as Paid through the system, so I am worried I will be showing an additional income if I enter both.
Would I deduct the 1099 amount from my HB totals, then enter the 1099, or do I enter both? So confused!
Best answer by Geily Romero
Hi Amy!
If you received a 1099-K from HB as well, it wouldn’t include payments paid to you from outside the platform or payment you manually “marked as paid: in HB. That said, you wouldn’t need to deduct the amount included in his 1099 since it wouldn’t even be included in HB’s 1099 to you.
If you’re referring to the Payments Completed report instead, then yes, those would be there, they would be easily identified as “Manual” so you could just exclude those from there and use the 1099 he provided to you and all the other payments on your report. Something else you could do is have your report and then just mention to your CPA/Accountant that the payments on this 1099 are already accounted for on this report that this 1099 is just a back up but you had your own financial records as well. Verify your totals before submission and you should be good!
+4Hi Amy!
If you received a 1099-K from HB as well, it wouldn’t include payments paid to you from outside the platform or payment you manually “marked as paid: in HB. That said, you wouldn’t need to deduct the amount included in his 1099 since it wouldn’t even be included in HB’s 1099 to you.
If you’re referring to the Payments Completed report instead, then yes, those would be there, they would be easily identified as “Manual” so you could just exclude those from there and use the 1099 he provided to you and all the other payments on your report. Something else you could do is have your report and then just mention to your CPA/Accountant that the payments on this 1099 are already accounted for on this report that this 1099 is just a back up but you had your own financial records as well. Verify your totals before submission and you should be good!
Thank you so much!
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