I am a contractor and received a 1099 Misc. form from a customers mortgage company. I had a contract to do some work for a family on their home after the hurricane. We were both on the checks but they deposited them after I endorsed. Problem is I did not end up doing all the work to earn all the money. I actually only did about 15% of the work. They used the money to have other people do some work and they did some themselves (I think).

Should I simply send them a 1099 for the balance as they can offset the income from the costs to repair the home?

Should I simply send them a 1099 for the balance as they can offset the income from the costs to repair the home?==============>>no. they send a 1099 to you,you do not send them a 1099. I mean aslongas you provide them with your service,they send you a 1099 basically, IRS requires any person or biz that makes certain types of payments to report them on a 1099-MISC to the recipient and the IRS;as you can see, the 1099-MISC form reports the total amount of payments you receive from a single person or entity during the year you've provided services to them. so

Thanks for the reply. I don?t think I was clear in my original post.

I received a 1099 with my name AND the homeowners names on the form. The amount was 81,000. I did 13,000 of work. The homeowners got the balance of the money. How do I account for the 68,000 that I didn?t actually receive?

then you just report it, $68K, as other income onyour Sch Cof 1040 to subtract it from your total income of $81K.

you may need brief explanation on your situation on Sch C of 1014 for Line 27:Other expenses

Thanks for the help! Really appreciate it.

holy cow..my bad; NOT as other income but other expenses,line 27 on Sh C of 1040. orry forthe mistke

I kinda figured that was the case after I reread it

Thank you for the clarification