Tax Question

I wrote some biz with a company and than everything fell thru....yada yada yada. Company says I owe them around 2100 in chargeback and the other day I received a 1099 for around 2400. So I have to pay taxes on money that I had to pay back to the insurance company.

It really does not make any sense.
 
I wrote some biz with a company and than everything fell thru....yada yada yada. Company says I owe them around 2100 in chargeback and the other day I received a 1099 for around 2400. So I have to pay taxes on money that I had to pay back to the insurance company.

It really does not make any sense.

Well, welcome to the world of Advances!
 
I wrote some biz with a company and than everything fell thru....yada yada yada. Company says I owe them around 2100 in chargeback and the other day I received a 1099 for around 2400. So I have to pay taxes on money that I had to pay back to the insurance company.

It really does not make any sense.

No. The 1099 just shows they wrote you a check. You just have to add in the fact you paid them back to wipe it out. Of course, if you paid them back in the following year, then you have a tax situation, unless you claim income as earned, rather than as paid (not likely).

Dan
 
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