So in my 2016 my Husbands 1099-Misc income form was deleted and I didn't realize it until a few weeks ago. I received a letter from the IRS showing me this mistake and gave me a new proposed amount. My problem is that the IRS has already done an amendment on my 2016 taxes but I do not agree with how they entered the 1099-Misc. In my 2017 taxes (per turbo tax) I entered the 1099-misc in line 21 ( Other income) and was taxed based on that. With the amendment, the IRS used line 57 ( self-employment tax) now my husband is NOT self-employed and does not own his own business, he does wildland firefighting on the side and this is how they pay him.
So my question is, can I re-amend my 2016 taxes to take off the self-employment tac and add the income in line 21?
You need to confirm beyond all doubt, what box that income was reported in on the 1099-MISC. If it was reported in box 7 of that form, then it's self-employment income. Period. If it's reported in box 3 of the 1099-MISC, then you have a provable claim that it's not self-employment.
If the income was reported in box 7 of the 1099-MISC, then that gets transferred from the SCH C to line 57 of the 1040.
If the income was reported in box 3 of the 1099-MISC, then it gets reported on line 57 of the 1040 "UNLESS" an exception applies (and there are many exceptions.) In the case of an exception, it gets reported on line 21.
If necessary, contact the issuer of that 1099-MISC and see if they can issue you a copy. Also be aware that you have a time limit to challenge this, as indicated in the letter you received from the IRS. So don't waste time. Once the deadline to challenge their findings has past, you have no recourse.
So on the 1099-MISC the income is in box 7 so I'm stuck no matter what? Or are there some exceptions?