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?