Confused about 1099-S vs. Substitute for 1099-S form after home sale - which one is valid?

You need to report the information from the official 1099-S form that should have been filed with the IRS. The "Substitute for 1099-S" is typically used when the closing agent/title company provides you information about the transaction but isn't the one officially filing the 1099-S with the IRS. Since you have both forms, you should compare them to see which entity actually filed with the IRS. Usually, either the title company or the real estate broker will handle this filing, but not both. The small difference in amounts could be related to how closing costs or other adjustments were calculated. Even though you likely qualify for the Section 121 exclusion (up to $500,000 for married filing jointly when you've lived in the home as your primary residence for at least 2 of the last 5 years), you still need to report the sale on your tax return using Form 8949 and Schedule D to show that the gain is excluded.

I just went through something similar and discovered taxr.ai (https://taxr.ai) which really helped sort out my document confusion. I had multiple versions of forms too - in my case it was 1099-MISC vs 1099-NEC that different clients gave me. The site analyzed all my tax documents and flagged the discrepancies, then explained which ones I should actually be using. For your situation with the 1099-S vs Substitute, it sounds exactly like the kind of thing their system would catch. It was super helpful because it also explained how to report everything correctly on the tax forms instead of just pointing out the problem.

I was skeptical about taxr.ai but gave it a try with my home sale docs and wow - it actually sorted everything out! Uploaded both my 1099-S and the "substitute" form, and it immediately flagged the discrepancy. The analysis showed that my title company was the one who should have filed the official 1099-S based on who handled the closing. The system even showed me exactly where to report it on Schedule D and explained why the numbers were different (in my case, one included certain closing costs and the other didn't). Saved me from potentially reporting the same transaction twice or using incorrect numbers. Better than asking my accountant who charges $150 per question these days!

If you're struggling to get answers about which 1099-S was actually filed with the IRS, I'd recommend using Claimyr (https://claimyr.com). I was in a similar situation last year with duplicate 1099 forms and spent WEEKS trying to get through to the IRS. Claimyr got me connected to an IRS agent in about 15 minutes who confirmed which form was actually filed in their system. There's a demo video that shows how it works here: https://youtu.be/_kiP6q8DX5c - basically they use a technology that navigates the IRS phone tree and waits on hold for you, then calls you when an actual human IRS agent is on the line. I was absolutely shocked when it actually worked.

I have to eat my words on this one. After doubting Claimyr would work, I tried it in desperation after getting disconnected THREE TIMES waiting on the IRS line about my 1099-S confusion. Within about 45 minutes, I got a call connecting me to an actual IRS representative who confirmed which version of my 1099-S was officially filed. Turns out in my case, BOTH forms had actually been filed - the title company filed the official 1099-S, but my realtor had also accidentally submitted one. The IRS agent was able to note this in my account to prevent any future issues. She even took time to explain how to report it correctly on my return. Didn't think anything could actually get through to the IRS these days, but this literally saved me days of frustration.

Just to add another perspective - you can check your IRS transcript online to see what forms have been filed under your SSN. Create an account at irs.gov and request your "Wage and Income Transcript" for 2023. It will show all information returns filed with your SSN including any 1099-S forms. That way you'll know exactly what the IRS has on file without having to call them.

One thing to consider - even though you qualify for the $500k exclusion and probably won't owe taxes, you STILL need to report the sale on Form 8949 and Schedule D. Just list the details and then put "Section 121 exclusion" in the description and $0 for the gain. I've seen people get notices because they completely omitted reporting the home sale when they received a 1099-S.

I had this exact same situation when I sold my primary residence last year! Had both a 1099-S from the realtor and a "Substitute for 1099-S" from the title company with different amounts. Here's what I learned: The title company is usually the one required to file the official 1099-S with the IRS since they handle the closing. The realtor's version might just be their internal tracking. But definitely confirm this - call both and ask who actually submitted the form to the IRS. The $2,000 difference is likely due to how they calculated closing costs or commissions. One might include certain fees that the other doesn't. You're absolutely right that you still need to report the sale even with the Section 121 exclusion. I used Form 8949 to show the sale details and then noted the exclusion. The IRS computers match 1099-S forms to tax returns, so omitting it entirely could trigger a notice even if you don't owe taxes. Pro tip: Keep all your closing documents handy when you file. You'll need your original purchase price, improvement costs, and selling expenses to calculate your actual gain and prove you qualify for the full exclusion.

I went through this exact situation when I sold my home in 2022! The confusion between 1099-S and "Substitute for 1099-S" is more common than you'd think. Here's what I learned: The key is to figure out which entity actually has the legal obligation to file the 1099-S with the IRS. In most cases, it's the "person responsible for closing the transaction" - which is typically the title company or closing agent, not the realtor. The realtor's 1099-S might just be their own tracking or a courtesy copy. For the $2,000 difference, this could be due to how they're calculating the gross proceeds. One might be including/excluding certain closing costs, real estate commissions, or transfer taxes differently. Since you qualify for the Section 121 exclusion, you're right that you probably won't owe any tax, but you absolutely must still report the sale on Schedule D and Form 8949. The IRS computers will flag your return if they have a 1099-S on file but don't see the corresponding sale reported. My advice: Call both the title company and realtor to confirm who actually filed with the IRS. Then use that form's numbers for your tax return. If you can't get a clear answer, you might want to request your IRS transcript to see exactly what was filed under your SSN. Don't stress too much - even if there's a small discrepancy, as long as you're reporting the sale and properly claiming the exclusion, you should be fine!

I had a very similar situation last year and here's what worked for me: First, I called both the title company and realtor to ask directly who filed the official 1099-S with the IRS. The title company confirmed they were responsible since they handled the closing, and the realtor's version was just their internal record-keeping. For the $2,000 difference, mine was due to how real estate commissions were being calculated - one form included the full commission amount in the gross proceeds while the other had already subtracted it. The important thing is to use whichever form matches what was actually submitted to the IRS. Since you mentioned you qualify for the Section 121 exclusion (which sounds right based on your situation), you'll still need to report the sale on Form 8949 and Schedule D even though you won't owe taxes. I just wrote "Section 121 exclusion" in the description column and showed the calculation that resulted in $0 taxable gain. One tip that saved me time: if you can't get clear answers from the title company or realtor about who filed what, you can request your 2023 Wage and Income Transcript from the IRS website. It will show exactly which 1099-S forms were filed under your SSN. That way you know for certain which numbers to use on your return and avoid any matching issues with the IRS computers.

I dealt with this same exact situation when I sold my condo in 2023! Had both forms with different amounts and was totally confused about which one to use. Here's what I found out: The "Substitute for 1099-S" is basically just a summary the title company gives you for your records, but the actual 1099-S that gets filed with the IRS usually comes from whoever was legally responsible for reporting the transaction. In most home sales, that's the title/closing company, not the realtor. The $2,000 difference you mentioned is super common - it's usually because one form includes certain closing costs or fees while the other doesn't. I had a similar discrepancy and it turned out one included the transfer tax while the other had already subtracted it. Even though you're eligible for the Section 121 exclusion and won't owe taxes, you definitely still need to report the sale on your tax return. The IRS matches 1099-S forms to returns automatically, so if you don't report it at all, you'll likely get a notice asking where it is. My suggestion would be to call both the title company and realtor first to confirm who actually filed the official form with the IRS. If they can't give you a clear answer, you can check your IRS transcript online (though the identity verification can be a pain) or use one of those services others mentioned to get through to an actual IRS agent who can tell you exactly what's on file under your SSN. Don't stress too much about it - as long as you report the sale properly and show the exclusion, you should be fine even if there are minor discrepancies in the amounts.

I went through this exact same confusion when I sold my primary residence last year! The key thing to understand is that typically only ONE entity is actually required to file the official 1099-S with the IRS - usually the title company since they're considered the "person responsible for closing the transaction." The realtor's 1099-S might just be their internal tracking or a courtesy copy they provide. The "Substitute for 1099-S" from the title company is likely just their record-keeping document for you, while they would have filed the official version with the IRS. That $2,000 difference is super common - it's usually due to how closing costs, commissions, or transfer taxes are being calculated. One form might include these in the gross proceeds while the other subtracts them out. Here's what I'd recommend: Call both the title company and realtor directly and ask which one actually filed the 1099-S with the IRS. Most of the time it will be the title company. If you can't get a clear answer, you can request your 2023 Wage and Income Transcript from irs.gov to see exactly what forms were filed under your SSN. You're absolutely right that you still need to report the sale on Form 8949 and Schedule D even though you qualify for the Section 121 exclusion. The IRS computers automatically match 1099-S forms to tax returns, so omitting it could trigger a notice. Just show the sale details and note "Section 121 exclusion applied" to demonstrate you properly calculated everything. Don't stress too much - as long as you report it correctly and show your exclusion calculation, minor discrepancies in amounts are usually not a big deal!

I've been through this exact scenario twice now (sold my primary residence in 2021 and a rental property in 2023), so I can definitely relate to the confusion! The key thing to understand is that the "Substitute for 1099-S" is typically just a summary document the title company provides for your records, while the actual 1099-S is what gets officially filed with the IRS. In most cases, the title/closing company has the legal responsibility to file since they're the "person responsible for closing the transaction." That $2,000 difference you're seeing is super common - it usually comes down to how different entities calculate the gross proceeds. One might include the full sale price while the other has already subtracted certain closing costs, transfer taxes, or real estate commissions. Here's what I'd recommend doing: 1. Call both your realtor and title company directly and ask who actually filed the official 1099-S with the IRS 2. If you can't get a clear answer, request your 2023 Wage and Income Transcript from irs.gov - it will show exactly which forms were filed under your SSN 3. Use the numbers from whichever form was actually submitted to the IRS for your tax return You're absolutely right that you still need to report the sale on Form 8949 and Schedule D even with the Section 121 exclusion. The IRS computers automatically match 1099-S forms to returns, so omitting it entirely could trigger a notice. Just show the sale details, calculate your actual gain (if any), and note "Section 121 exclusion applied" in the description. Don't stress too much about this - as long as you report the transaction and properly show your exclusion, you'll be fine!