1099-MISC issued to Provider instead of Patient

kged05 · #1 (**permalink**) 02-24-2018, 10:50 AM

I am a self-employed therapist that is out-of-network. I rendered services for a patient who then submitted claims to their insurance provider for reimbursement. The insurance company incorrectly sent me (the provider) the reimbursement checks rather than the patient. When I contacted insurance, they told me to cash the checks and then pay the patient which I did and can show proof of this. The insurance company has now sent me a 1099-MISC and after weeks of dealing with the insurance company, they have advised that there is nothing they can do other than opening an investigation and that would take months to resolve. So I am trying to to see if there is a way to correctly handle this situation on my taxes so I am not taxed on this income?

Wnhough · #2 (**permalink**) 02-24-2018, 11:35 AM

Quote:

Originally Posted by kged05

I am a self-employed therapist that is out-of-network. I rendered services for a patient who then submitted claims to their insurance provider for reimbursement. The insurance company incorrectly sent me (the provider) the reimbursement checks rather than the patient. When I contacted insurance, they told me to cash the checks and then pay the patient which I did and can show proof of this. The insurance company has now sent me a 1099-MISC and after weeks of dealing with the insurance company, they have advised that there is nothing they can do other than opening an investigation and that would take months to resolve. So I am trying to to see if there is a way to correctly handle this situation on my taxes so I am not taxed on this income?

you may report the amt on 1099 on your SCh C of 1040 as income and then claim the same amount on your SCh C of 1040 as other expenses. If you want you may submit some explanation on the issue with your return.