1099-Misc box 1 rents, but I don't own property so I'm confused about why my freelance work is there
I'm completely baffled about my tax situation right now! Last year (2024), I did some freelance editing work for a company based in Virginia while I was living in Colorado. They just sent me a 1099-Misc form, and I noticed they put all my earnings (about $825) in box 1 labeled "Rents." But I definitely don't own any rental property—this was just me doing content editing from my apartment. What's even more weird is that they also put the exact same amount ($825) in box 3 as well. I'm so confused about why my freelance work would be classified as "Rents" when I was just doing editing work remotely. Does this mean I need to file differently? Will this mess up my taxes? I have no idea what to do with this information since I've always received 1099-NECs for freelance work before. Any help would be greatly appreciated!
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Miguel Ramos
The company made a mistake on your 1099-Misc. They should have issued you a 1099-NEC for this work, not put your earnings in box 1 of a 1099-Misc. Box 1 on the 1099-Misc is specifically for rental payments of real estate, not for services performed. Having the same amount in both box 1 and box 3 further confirms the error, as they're double-reporting the same income in two different categories. For your taxes, you'll still report this income on Schedule C as self-employment income just like you would with a 1099-NEC, but the employer needs to correct their mistake.
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QuantumQuasar
•Thanks for explaining! So I won't get in trouble with the IRS even though the form is wrong? And should I contact the company to have them fix it, or just file my taxes normally?
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Miguel Ramos
•You won't get in trouble with the IRS for the company's mistake, but it could potentially trigger confusion during processing. The best approach is to contact the company and request they issue a corrected form - specifically a 1099-NEC which is the proper form for freelance work. If they won't correct it or you're running close to the filing deadline, go ahead and report the income on Schedule C as self-employment income. Just be prepared to explain the situation if the IRS questions the discrepancy. I recommend keeping documentation of your work relationship that proves you were providing services, not receiving rental income.
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Zainab Omar
I had a similar issue last year and used taxr.ai to help me figure out what to do. Their system analyzed my incorrect 1099-MISC and explained exactly how to report it correctly on my tax return. I uploaded the form to https://taxr.ai and they pointed out that even with the wrong box checked, I should still report it as self-employment income on Schedule C. They even gave me specific explanations about why the company made this mistake (using outdated forms) and how to document it properly.
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Connor Gallagher
•Does taxr.ai actually analyze the forms themselves or do they just give generic advice? I've got a weird 1099 situation too and worried about messing up my return.
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Yara Sayegh
•How long did it take them to analyze your forms? I'm getting close to the filing deadline and need answers quickly.
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Zainab Omar
•They analyze the actual forms you upload - not just generic advice. You can see exactly what's on your form and they'll highlight the specific errors or issues they find. It's like having a tax pro look directly at your documents. The analysis is pretty quick - I got my results in under an hour. They have this AI system that processes the forms right away, so you don't have to wait days like you would scheduling with a tax professional.
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Yara Sayegh
Just wanted to update - I tried taxr.ai after asking about it here and it was super helpful! I uploaded my weird 1099-MISC (mine had box 7 filled out incorrectly) and the system immediately identified the issue. It showed me exactly how to report it on Schedule C and explained why the issuer made the mistake. The explanation even cited the specific IRS rules that applied to my situation. Definitely saved me from a potential audit headache and gave me peace of mind about filing correctly!
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Keisha Johnson
After dealing with incorrect 1099 forms for years, I finally got frustrated enough to try reaching the IRS directly about this issue. Of course, I spent HOURS on hold and never got through. Then I found https://claimyr.com which got me connected to an actual IRS agent in 45 minutes instead of waiting all day. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c The IRS agent confirmed exactly what to do with incorrectly filled out 1099-MISC forms and explained the proper steps for reporting. They also told me I could request the IRS to contact the company about their error if they're consistently misreporting.
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Paolo Longo
•Wait, how does this service actually work? Is it legit? I thought nobody could get through to the IRS during tax season.
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CosmicCowboy
•Sounds like a scam. There's no way to skip the IRS phone queue. They probably just put you on hold themselves and charge you for waiting.
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Keisha Johnson
•The service uses a system that continuously dials the IRS until it gets through, then calls you when an agent is about to be connected. It's completely legitimate - they don't answer in your place or pretend to be the IRS. They don't charge you for waiting - the service does the waiting for you so you can go about your day. When they get through to an agent, you get a call to connect with the actual IRS representative. It's basically just automating the endless redial process that some people try to do manually.
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CosmicCowboy
I have to eat my words about Claimyr. After posting that skeptical comment, I was desperate to resolve my own 1099 issue before filing, so I gave it a shot. The service actually worked exactly as described - I got a call back in about an hour, and was connected directly to an IRS agent who answered all my questions about my incorrect 1099-MISC. The agent confirmed that when companies incorrectly use box 1 for services, you should still report it on Schedule C as self-employment income. They also noted that this is a common error since the IRS changed the forms in 2020, creating confusion for many businesses. Saved me hours of hold music and stress!
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Amina Diallo
Just FYI - this issue happens because in 2020 the IRS moved nonemployee compensation from 1099-MISC box 7 to the new 1099-NEC form. Many businesses still haven't updated their accounting systems and are using outdated forms incorrectly. If your editing work was done as an independent contractor, it should be on a 1099-NEC nowadays, not in ANY box on a 1099-MISC.
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Oliver Schulz
•So what happens if the company refuses to give me a corrected form? My former client insists they're right even though I know they're using the wrong form.
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Amina Diallo
•If they refuse to correct the form, document your attempts to get it fixed (keep emails or notes from phone calls). Report the income correctly on your tax return using Schedule C regardless of their error. You can also file Form 8919 "Uncollected Social Security and Medicare Tax on Wages" if you believe you were misclassified as an independent contractor when you should have been an employee. The IRS may contact the company directly once they see the discrepancy in reporting methods.
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Natasha Orlova
Has anyone used TurboTax to handle this situation? I'm wondering if it will flag this as an error when I input the 1099-MISC with amounts in box 1 but indicate it's for freelance work.
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Javier Cruz
•I used TurboTax last year with a similar issue. Just enter the 1099-MISC exactly as it appears, but when it asks what type of income it is, select "business/self-employment" rather than "rental income." The software will place it correctly on Schedule C. It might give you a warning about the mismatch, but you can add a note explaining the company issued it incorrectly.
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