Thanks TaxGuru! My concern is that there are no expenses to claim. I wasn't paid nor was I given reimbursement for anything. She literally made up a number (a nice round one, at that) and claimed it on my 1099. She insists that she has documentation of it but will not disclose to me what it is.
That being said, I did contact the IRS and have been told to sit tight and file the numbers that I know to be correct. I thought I could file a 4852 but perhaps that is for a 1099-R, not a 1099-misc?
Originally Posted by TaxGuru
It seems that the Employer has reported more 1099-Misc income to you may have received in 2008. This is not an unusual situation and the way to handle this is to report this income (as it appears on the 1099-Misc) on Schedule C Line 1.
Then I suggest that you claim an expense item called "additional income erroneously reported" under the category called "Other Expenses". I would then attach a statement to the tax return explaining that the Employer has erroneously reported the additional income to you in 2008 for which you have claimed the deduction under the Other Expenses category. You don't really have to call the IRS or get stressed up about this, this is a very common occurrence!