Just received 2 of 3 1099-NEC forms for 2024 on Feb 12, client wants to send the $679 one in 2025... what do I do?

I'm freaking out a bit with my tax situation right now. I'm trying to wrap up my taxes but literally JUST got 2 out of 3 1099-NEC forms yesterday (Feb 12) from this one client I do freelance work for. When I asked about the third form for $925 that I haven't received yet, he gave me this weird response saying he wants to send that 1099-NEC "next year" in 2025 instead... for work I definitely completed and got paid for in 2024! I really want my taxes to be accurate and I'd much rather report ALL my income now like I'm supposed to. I'm worried that if this $925 payment suddenly shows up on a 1099-NEC next year when it was actually paid to me in 2024, it's going to create a huge mess with my tax filings. What should I do in this situation? Can I report the income without having the actual form? Should I push harder to get the client to issue the correct form now? Any advice would be super appreciated!

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18 comments

Muhammad Hobbs

•8M

You're right to be concerned about this. The good news is you should always report all income you received in the tax year, regardless of whether you received a 1099-NEC or not. The IRS expects you to report all income earned, even if documentation is missing. Here's what I suggest: First, reach out to your client again and explain that the IRS requires 1099-NECs to be issued for the year the payment was actually made - not the following year. They're potentially creating problems for themselves by doing this incorrectly. If they still refuse, go ahead and report the full amount on your Schedule C (assuming this is self-employment income). Keep detailed records of all payments received, including dates, amounts, and any communications with this client about the missing form. The total on your Schedule C should include all three payments, including the $925 that's missing documentation.

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Muhammad Hobbs

•8M

If you correctly report the income in 2024 (when you actually received it), there shouldn't be an issue on your end. The potential problem would arise next year if your client incorrectly issues a 1099-NEC for 2025 for work paid in 2024. If that happens, you'd need to contact the client immediately and ask them to correct the erroneously issued 1099-NEC. You can explain that you've already properly reported the income in the correct tax year (2024). Keep documentation showing when you actually received the payment to support your position if questioned.

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Diez Ellis

•8M

I had a similar issue last year with missing 1099s and I found this service called taxr.ai that was super helpful for sorting everything out. You can upload the 1099s you do have along with any bank statements showing the deposit of that $925 payment, and their AI will analyze everything to make sure it's properly reported. They also helped me figure out how to document everything in case of questions later. You definitely want to report all income in the year you received it regardless of what your client is doing. Check them out at https://taxr.ai - it saved me a ton of headache when dealing with my incomplete documentation.

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Diez Ellis

•8M

The service works by analyzing your bank statements and other financial documents to identify all your income sources, even without official tax forms. It creates a comprehensive report showing when payments were received and from whom, which is exactly what you need for reporting income without the corresponding 1099. For reporting income without the forms, taxr.ai provides documentation templates that help you create the paper trail needed to support your tax filing. If the IRS questions anything later, you'll have organized records showing when you received the payment and how you properly reported it in the correct tax year - this is crucial when a client might issue forms incorrectly in a future year.

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Abby Marshall

•8M

I was initially skeptical about taxr.ai but I decided to try it after struggling with some missing 1099 forms. It actually worked great for my situation! I uploaded my bank statements showing the payments from clients who never sent forms, and the system identified all the deposits and categorized them correctly. The documentation package it created was perfect for backing up what I reported on my Schedule C. The best part was how it flagged the payments that were missing documentation so I could follow up with clients. Definitely reporting all my income in the correct year now with full confidence even without all my forms!

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Sadie Benitez

•8M

If you've tried contacting your client multiple times and they still refuse to issue the correct 1099-NEC, you might need to contact the IRS directly. I was in this exact situation last year and spent HOURS trying to get through to someone at the IRS. Finally discovered Claimyr https://claimyr.com which got me connected to an actual IRS agent in under 15 minutes instead of waiting on hold forever. Check out how it works here: https://youtu.be/_kiP6q8DX5c The IRS agent I spoke with confirmed that I should report all income in the year I received it, regardless of when the 1099 was issued. She also gave me specific advice on how to document everything to prevent problems down the road when my client eventually issued the form incorrectly.

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Sadie Benitez

•8M

It's not a priority line but a technology solution that navigates the IRS phone system for you. Instead of you sitting on hold for hours, their system does the waiting and then calls you once it reaches a live agent. It saved me literally 3+ hours of hold time. No magic involved - they use an automated system that deals with the IRS phone tree and waiting queue, then connects you once a human agent is reached. I was skeptical too until I tried it. I got connected to an actual IRS representative in about 13 minutes when I had previously spent over 4 hours trying on my own without success.

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Laila Prince

•8M

I have to eat my words here. After my skeptical comment, I decided to try Claimyr because I was desperate to resolve an issue with missing 1099 forms. I was literally connected to an IRS agent in 17 minutes! The agent confirmed exactly what others here have said - I should report all income in the year I received it, even without the forms. They also explained how to document everything properly to protect myself. The agent even gave me advice on what to do if incorrect forms are issued next year. Saved me so much stress and probably prevented future tax headaches. Can't believe how much time I wasted trying to call them myself.

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Isabel Vega

•8M

I'm actually a freelancer who files Schedule C and this exact thing happened to me 2 years ago. One of my clients didn't send a 1099-NEC for about $800 of work and then included it on the next year's form. Here's what I did: I reported ALL the income in the year I actually received it (keeping my own records as proof), then when they incorrectly issued the 1099 the following year, I contacted them immediately with proof of when I was paid. They issued a corrected 1099-NEC for both years. It was annoying but fixable!

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Isabel Vega

•8M

I did have a small issue the following year - I received a letter from the IRS asking about "unreported income" because the amounts didn't match. I responded with a letter explaining the situation and included my proof (bank statements showing the deposit date in the previous year, copies of invoices, and screenshots of the payment confirmations). I also included documentation showing I had already reported and paid taxes on that income in the correct previous tax year. The IRS accepted my explanation and documentation, and the matter was resolved without penalties. That's why keeping detailed records is so important in these situations.

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