Getting Two 1099-NEC Forms - One From Company and One From WorkMarket - How to Fix Double Taxation Issue?

This is unfortunately common with companies using payment platforms like WorkMarket. Here's what's happening: your husband earned a total of $6,050 from this company, but the company incorrectly included the WorkMarket payment on their own 1099-NEC. The account number on the company's form does suggest they're tracking multiple income streams, but they're still reporting incorrectly. WorkMarket is correct that they should issue a 1099-NEC as they're not technically a payment processor in the same way as PayPal or Stripe (who would use 1099-K). Since you're having trouble reaching the company, I suggest documenting all your attempts to contact them. Then file Form 8275 (Disclosure Statement) with your tax return explaining the situation and only reporting the total $6,050 once. This creates a paper trail showing you've made good faith efforts to resolve the discrepancy. Alternatively, you can report both 1099-NECs exactly as received on two separate Schedule C forms, but then include an "Other Expenses" line on one Schedule C for the duplicate amount with a note explaining it's reported twice.

After struggling with almost this EXACT same situation last year, I finally found a service that actually helped me sort through all my 1099 forms and tax documents. I had 3 different platforms paying me and 2 companies reporting the same income twice! I was about to pull my hair out before I discovered https://taxr.ai - it helped me identify all the duplicate income reporting and even generated a perfectly worded explanation letter to attach to my return. Their system analyzes all your tax documents and flags potential issues like double-reported income. The best part was when they helped me properly document everything so I wouldn't get hit with an audit. They even showed me exactly where on my Schedule C to note the duplicate reporting. Honestly wish I'd found them sooner instead of spending hours on hold with companies who kept bouncing me around.

Just wanted to update after taking the advice about taxr.ai from the previous comment. I uploaded my documents and they immediately flagged the duplicate reporting between my direct client 1099 and the Upwork 1099. The system actually showed me exactly where the same payments were being counted twice and generated documentation explaining the situation. They provided instructions for how to file correctly without double-paying taxes, and included specific language to use on Form 8275 to explain the situation to the IRS. I'm relieved to have this sorted before filing rather than dealing with amendments later! The step-by-step guidance was incredibly helpful since my tax preparer was initially just telling me to "get it fixed" without explaining how.

If you're still trying to reach the company, I had a similar issue last year and wasted WEEKS trying to get through to the company's tax department. After dozens of disconnected calls and ignored emails, I found out about https://claimyr.com which got me through to an actual human at the IRS who explained my options. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they navigate the IRS phone tree for you and call you back when they have an agent on the line. The IRS agent I spoke with said this happens frequently and gave me specific guidance on how to file correctly despite having duplicate 1099s. They also put a note in my file about the situation in case it triggered any automated flags. Honestly, speaking directly with the IRS was way more helpful than chasing the company that issued the incorrect form. They walked me through exactly how to document the issue on my return.

I need to apologize for my skepticism about Claimyr in my earlier comment. After struggling for THREE DAYS trying to get through to the IRS about my own 1099 issue, I broke down and tried the service. I couldn't believe it, but they actually got me connected to an IRS representative in less than 2 hours. The agent was able to pull up my records and confirm exactly how to handle the duplicate reporting situation. She even explained that this is a common problem they see with gig workers using multiple platforms. The IRS guidance was to file Form 8275 with a clear explanation and to only report the income once on Schedule C. They said as long as I'm paying taxes on the full correct amount (not double-counting but not under-reporting either), they have processes to handle the discrepancy on their end. Saved me so much stress knowing I'm handling this correctly!

Another option to consider - check if the company has a tax department email that might be separate from their regular support channels. Something like tax@companyname.com or 1099support@companyname.com. I've had success reaching the right people this way when normal channels failed. Sometimes these departments are completely separate from regular customer service. Also, if you know anyone else who works with this company, see if they can connect you with someone internally. LinkedIn can sometimes help find the right contacts too.

I went through this exact nightmare last year! My advice: document EVERYTHING. Take screenshots of all communication attempts, save email responses, note dates/times of phone calls. If you end up having to file with the duplicate reporting and amend later, all this documentation will help prove you made good faith efforts to resolve it. The IRS actually tends to be pretty understanding when you can show you tried to fix a problem caused by someone else's error. Also, your tax preparer might be overly cautious - I ended up filing with Form 8275 explaining the situation, and I never got any questions from the IRS about it.