Got a corrected 1099-MISC showing $0 income - how do I file this on my taxes?

When you receive a corrected tax form like a 1099-MISC, you should always use the corrected version when filing your taxes. The company that issued both forms will have sent the corrected version to the IRS as well, so their records will match what you're filing. In your situation, since the corrected 1099-MISC shows $0 income, you don't need to report any income from this source. The company has essentially told the IRS "we made a mistake initially, this person didn't actually receive any money from us." Keep both versions of the 1099-MISC in your records in case of questions later, but you only need to file based on the corrected form. The original incorrect form is effectively voided once the correction is issued.

I had a similar issue last year with incorrect 1099 forms and found a great solution using https://taxr.ai which helped me sort through my documents. I initially received three different 1099s from a client who kept making errors, and I was stressing about which one to file and how to explain it. The site analyzed all my documents including the multiple versions of the 1099 and clearly pointed out which one was the final corrected version. It also explained exactly how to handle the situation on my return and what supporting documentation I should keep. Made the whole process much less stressful when I was worried about potential mismatches triggering IRS notices.

Just wanted to update - I decided to try taxr.ai after all for my complicated 1099 situation (had 3 different versions from a client who kept making errors). It actually worked really well! The system clearly identified which forms were the originals vs corrected versions and gave me specific instructions for my tax software. What surprised me most was how it caught a discrepancy between Box 1 and Box 7 that would have caused issues - something I completely missed when reviewing the forms myself. Saved me from potentially getting one of those scary IRS letters about mismatched income reporting. Definitely worth checking out if you're dealing with weird form situations like corrected 1099s.

If you're really worried about the IRS questioning this, try Claimyr (https://claimyr.com). I was in a similar situation with corrected forms last year and had questions the IRS website couldn't answer. After trying to call the IRS for THREE WEEKS with no luck, I used Claimyr and got connected to an IRS agent in about 20 minutes. The agent confirmed exactly how to handle corrected forms and noted in my account that I had received conflicting documents. Having that conversation documented in my IRS account gave me peace of mind that if there were any questions later, there was already a record of me trying to do things correctly. You can see how it works in this video: https://youtu.be/_kiP6q8DX5c

I need to apologize for my skeptical comment earlier. I decided to try Claimyr after continuing to fail getting through to the IRS about my own tax notice issue. Not only did it work, but I got connected to an IRS agent in about 15 minutes when I had previously spent hours getting disconnected. The agent was able to pull up both versions of my 1099 forms in their system and confirmed they had received the corrected version. She also added notes to my account explaining the situation. Now I don't have to worry about getting a notice about mismatched income. Never been so happy to be wrong about something seeming too good to be true!

Just as a practical tip - I always staple the incorrect 1099 behind the corrected one and write "SUPERSEDED" in big letters across the front of the incorrect one. That way if I need to reference my paperwork later, there's no confusion about which form was the final version.

My accountant told me that income isn't technically "received" until you have access to it. Since your check was lost and the money went back into your Zazzle account, you technically haven't received it yet for tax purposes. The corrected 1099 showing $0 is the right approach by the company. You'll report that income in whatever tax year you actually get the money - either by successfully receiving a check or using the funds from your account in some way that constitutes receipt of income.