It depends.
If you have correctly reported the amounts received from your records and they are compatible with the amount mentioned in the letter, then there is no need to file an amended return.
If, on the other hand, you now realized that the amount you have reported as business income is wrong and does not correspond to the amount reported on the letter, then you'll need to file an amended return.
I didn't report any business income prior as MA is making their lower threshold retroactive. So I need to utilize Turbo Tax Self Employed for this amendment now? Is this letter enforceable, and does it pose an audit risk for MA? The profit was $500 on $6,500.
If you did not report this income, you'll need to amend your tax returns (federal and state). This letter is proof that you received the income (unless you can prove otherwise). To amend, please follow the instructions in this TurbpTax FAQ:
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Even though it is not an official business, rather just myself buying and selling does it count as a business transaction and income?
I sold event tickets. My cost of tickets was 6,000 and my sales were 6,500
Selling event tickets for a profit is considered as a self-employed business. The income of $500 is taxable and subject to self-employment tax. You need to report it.
Got it thank you!! And I must upgrade to Turbo Tax Self Employed version to be able to input my cost of inventory?
It seems like this retroactive change in MA is going to affect a lot of people. It's easy to hit the $600 threshold for Ebayers!!
No matter what state you live in, you are required to report income from online transactions (on your federal return, and state if your state has an income tax). MA just has a lower threshold for the transaction processor to provide a 1099-K.
(For anyone else who comes across this thread, a one time transaction is not necessarily a business. If you made a profit on items you sold but are not running a business, you could report the profit in the Miscellaneous Income section, as "Other Reportable Income".)