My daughter won a Toyota Prius on the Price Is Right. The 1099-MISC CBS sent her is for $22,684.00, the MSRP for the car. She had the car delivered to the local Toyota dealer and used it as a trade-in on a larger Prius. The dealer valued the trade-in Prius at $16,600. How do I "adjust" the 1099-MISC to indicate the true value of the car to my daughter was $16,600, not the $22,684 MSRP? I have the sales contract showing the trade-in value was $16,600.

I guess you can report the amount on 1099MISC, $16,600, on 1040 line 21 You may add an additional line on the detail for income showing the necessary adjustment to the 1099-Misc amount. As the amount on the 1099-Misc is more than it should be, enter your adjustment as a negative number. The description for the detailed statement should read "Adjustment to Correct 1099-Misc." Maintain your records with proof that your adjustment is valid. If you are audited by the IRS, you will need to show the auditor why you made this adjustment and prove that it was appropriate. CBS ‘d send copies of 1099/1096 to the IRS. I guess yo need to contact the IRS for more info in detail.