What Should You Do If You Receive a HoneyBook 1099 Twice?

Tax forms can be confusing, especially when you receive duplicates. If you’ve been issued two 1099 forms from HoneyBook, it’s important to determine whether this is an error or if both need to be reported on your tax return. Ignoring the issue could lead to incorrect income reporting and potential IRS scrutiny.

Addressing duplicate 1099s requires careful verification, communication with the issuer, and proper documentation. Understanding how to handle this situation ensures accurate tax filing and helps prevent future complications.

Why You Might Receive More Than One 1099

Receiving multiple 1099s from HoneyBook can happen for several reasons. One common cause is how payments are processed. If you received payments through both direct deposit and a credit card, HoneyBook may issue separate 1099s—one for bank transfers (1099-NEC) and another for card transactions (1099-K). Third-party payment processors like Stripe or PayPal report card-based payments, while HoneyBook reports direct payments it facilitates.

Another possibility is a change in your business details during the year. If you updated your Taxpayer Identification Number (TIN), business name, or address, HoneyBook might generate a second 1099 to reflect the new information. This can occur if payments were processed under both the old and new details.

Timing issues can also lead to multiple forms. If HoneyBook initially issued a 1099 with incorrect or incomplete information, they may have sent a corrected version later. In that case, only the most recent form should be used for tax filing.

Verifying Income Amounts

To avoid misreporting, compare the total earnings listed on each 1099 with your own records, such as invoices, bank statements, or payment summaries from HoneyBook. The IRS receives copies of these forms, so discrepancies between what you report and what they have on file could lead to an inquiry.

Check whether both forms represent distinct payments or if they are duplicates. If HoneyBook provides an annual earnings summary, use it as a reference. The total reported across all 1099s should match what you actually received. If the income is overstated, you could end up paying more in taxes than necessary.

Also, note how the income is categorized. A 1099-NEC reports non-employee compensation, while a 1099-K reflects payments processed through third-party networks. If you received both, ensure the combined total matches your actual earnings and that the same payments aren’t counted twice. Misclassification can affect how your income is taxed, particularly regarding self-employment tax.

Correcting Errors or Discrepancies

If a 1099 from HoneyBook contains incorrect information, address it as soon as possible to avoid complications when filing your return. Errors can include incorrect payee details, misreported earnings, or receiving a form when no reportable payments were made.

If the name or TIN on the form is incorrect, the IRS may have trouble matching your reported income with their records, potentially leading to a notice. HoneyBook should issue a corrected 1099 with the accurate details. Similarly, if the reported income is too high or too low compared to what you actually received, it could affect your tax liability.

To request a correction, contact HoneyBook’s support team and provide documentation such as bank deposit records, invoices, or payment confirmations. If HoneyBook acknowledges the mistake, they should issue a corrected 1099 and submit the updated form to the IRS. The revised document will be marked “Corrected” at the top, replacing the original.

Reporting Multiple 1099s

When filing a tax return with multiple 1099s, ensure the total income reported matches what you actually earned. A 1099-NEC is reported as business income on Schedule C (Form 1040), while a 1099-K may require additional reconciliation, especially if it includes both business and personal transactions.

If multiple 1099s reflect the same earnings but are issued by different entities, such as HoneyBook and a third-party payment processor, avoid double-reporting that income. Review the source of payments to reconcile the amounts. The IRS does not require reporting the gross amount from a 1099-K separately if the same income is already included in total business revenue. Instead, ensure that the final reported revenue accurately reflects actual earnings without duplication.

Records to Keep

Thorough documentation is essential when dealing with multiple 1099s. Proper records help verify reported income and serve as evidence in case of an IRS audit or a dispute with the issuer.

Store copies of all 1099 forms, along with corresponding bank statements, invoices, and payment confirmations. These documents provide a clear record to reconcile reported income with actual earnings. Maintaining detailed accounting records can help track payments throughout the year. If a corrected 1099 is issued, retain both the original and the revised version. Keeping these records for at least three years aligns with IRS audit guidelines, though longer retention may be advisable for complex tax situations.

Communicating With the Issuer

If discrepancies arise, contact HoneyBook directly. Reach out to their support team as soon as you identify an issue, providing specific details. Clearly outline whether the discrepancy involves duplicate reporting, incorrect amounts, or outdated business information. Having supporting documentation readily available can speed up the resolution process.

When requesting a correction, ask for confirmation in writing to ensure there is a record of the request. If HoneyBook agrees to issue a revised 1099, follow up to verify that the corrected form has been submitted to the IRS. If the issuer does not acknowledge an error or refuses to make changes, you can attach an explanatory statement to your tax return. If the issue significantly affects your tax liability, consulting a tax professional or contacting the IRS may be necessary.