How do I adjust the amount on my Miscellaneous Income 1099 Tax form?

I recieved a 1099 - Tax form from microsoft. This is from recieving gratuity gift software for doing usability testing. Microsoft lists the total MSRP of the items recieved when I sold them for significantly less (50%). I am able to get a recipt or note from my buyer and his company. How do I go about providing the IRS with enough enformation to adjust the amount of %26quot;other income%26quot;?How do I adjust the amount on my Miscellaneous Income 1099 Tax form?You were sent a form 1099 for the %26quot;value of goods and services received.%26quot; You received a benefit from Microsoft, regardless of the amount for which you decided to turn around and sell the software.



You cannot legally adjust the amount of the 1099.



EDIT: Ah, taking a capital (with an %26quot;A%26quot;, not an %26quot;O%26quot;) loss is completely different from %26quot;adjusting the amount of the 1099,%26quot; which is what you asked about doing.How do I adjust the amount on my Miscellaneous Income 1099 Tax form?As you asked, and I stated in my answer below, by filing Schedule D, you will be providing the IRS with enough information to %26quot;adjust%26quot; the value of income they received on the 1099 from Microsoft. The IRS will take into account your loss in selling the software, and have it's accurate value to you.

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How do I adjust the amount on my Miscellaneous Income 1099 Tax form?You don't, unless Microsoft is willing to replace the 1099 with one of a lower amount.How do I adjust the amount on my Miscellaneous Income 1099 Tax form?You don't adjust them, that would be illegal. Are you ready to go to prison for tax fraud?



They would have to provide you with a 1099 of the products' value, which they did.



If you sold them at a lower price, then that is your own fault/your own loss? If you received software for testing, was it even legal for you to sell it?How do I adjust the amount on my Miscellaneous Income 1099 Tax form?You can't change the amount on the 1099, but you can file an IRS 1040 form and attach schedule D and show you sold the items at a loss.



IRS Form 1040 Schedule D Capital Gains and Losses

http://www.irs.gov/pub/irs-pdf/f1040sd.p



The items you received are called capital assets.

Your cost or basis is the amount on the 1099.

In order to be accurate, only account for the losses this way if you sold them in the same condition as you received them. In other words, you received them as new items, and you sold them as unused, new items but at a lower value than received.



You can deduct your losses up to $3000 per year. Any balance can be saved and carried over to next year.



Good luck