Amend 2018 Return

[randerson0222]

Hello, i need to Amend my 2018 return using Deluxe version. Originally i did not enter a 1099-misc Income item on my return. It was a lump sum of donations that we recvd for our son that was diagnosed w/ Cancer back then. The company issued me a 1099-Misc form for $4,920 and I didn't realize i needed to include as income.

Now I recvd a letter from IRS b/c i should have included as income.

My CPA friend said to enter it on Schedule C as "Incorrect 1099" other. Then, also subtract it back out on line 27-Other Expense. But I don't see schedule C - my software pckg added it to a "1099-Misc" worksheet???

how can i manually enter the figure (then subtract back out) on Schedule C?

Thank you, Randy

[MaryM428]

The 1099-MISC does not require a Schedule C.  

You will enter it as:

• Federal
• Wages and Income
• 1099 Misce and otehr common income
• Income from 1099-MISC

To remove the taxes on the income you will enter it again, but for the second entry put a minuis sign in front of the amount in front of the amount in Box 3.  (-4,920).

This will enter the 1099-MISC and prevent you from owing taxes on the money.

1099-MISC or 1099-NEC

[randerson0222]

first, TY for response. so, do u mean i should enter two separate 1099's? I don't see how to enter two amounts (one + and one -). I see box 3 but i don't know where to enter the positive amount. sorry for the question. I am stressing out as i have never recvd anything from the IRS in my 50 years.

[JeffreyR77]

Yes, @MaryM428 is recommending adding one 1099-MISC with the positive $4,920 in Box 3 and then adding a second 1099-MISC with the -$4,920 in Box 3 to offset the income added by the first. 

You can add a note with your response that the  $4,920 was funds raised  by others as donations to support medical and living expenses for your son etc etc.