Confused on 1099 sent to us After working for a large corp for 31 yrs; my husband has now semi retired and started his own repair business and set it up as a LLC.
A customer wrecked his car and filed the accident with his insurance company. Customer asked us if we could repair it and we said yes. Sent the insurance company an estimate and they approved it; so my husband did the repairs. We invoiced the customer for the entire amount and we received a check from his insurance company minus the deductible which the customer paid us for. We were excited because everything went smooth, we received payment fast, etc.
Now this week we receive a 1099 from the guy's insurance company. Will we have to pay taxes on this amount? When we file our taxes for the LLC; I feel like we will be paying twice for this job tax wise if we do.
Anyway, any insight on this would be great. I just hope you can understand what I'm asking as I am not familiar with taxes, etc. Our accountant is out of town for another week and I'm just sitting here clueless wanting some clarification. Thanks in advance |