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malik1
Level 3

Do I need to amend my 2019 tax returns for a missed 1099 form for $5000?

My wife received a 1099 form for $5000 after we filled our 2019 tax returns. Do I need to amend? I heard if a 1099 is unto $5000 you don't need to amend your tax returns.
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bluedeb
Level 15

Do I need to amend my 2019 tax returns for a missed 1099 form for $5000?

She must amend her return to add the $5,000.  Since the IRS considers any 1099 payment as taxable income, you are required to report your 1099 payment on your tax return. For example, if you earned less than $600 as an independent contractor, the payer does not have to send you a 1099-MISC, but you still have to report the amount as self-employment income.

 

Since the 1099 form you receive is also reported to the IRS, the government knows about your income even if you forget to include it on your tax return. Once the IRS realizes that you owe additional tax on your unreported 1099 income, it will notify you and retroactively charge you penalties and interest beginning on the first day your tax payment is late.

Amending your tax return

If you catch the error before the IRS contacts you, then you should file an amended tax return on Form 1040X, Amended U.S. Individual Tax Return. Be sure to include a copy of the 1099 with the amended return and include a payment for any tax you now owe. If you are still awaiting a refund from the original return, wait until you receive it before filing Form 1040X.

 

Amended returns must be mailed, they cannot be e-filed.  

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1 Reply
bluedeb
Level 15

Do I need to amend my 2019 tax returns for a missed 1099 form for $5000?

She must amend her return to add the $5,000.  Since the IRS considers any 1099 payment as taxable income, you are required to report your 1099 payment on your tax return. For example, if you earned less than $600 as an independent contractor, the payer does not have to send you a 1099-MISC, but you still have to report the amount as self-employment income.

 

Since the 1099 form you receive is also reported to the IRS, the government knows about your income even if you forget to include it on your tax return. Once the IRS realizes that you owe additional tax on your unreported 1099 income, it will notify you and retroactively charge you penalties and interest beginning on the first day your tax payment is late.

Amending your tax return

If you catch the error before the IRS contacts you, then you should file an amended tax return on Form 1040X, Amended U.S. Individual Tax Return. Be sure to include a copy of the 1099 with the amended return and include a payment for any tax you now owe. If you are still awaiting a refund from the original return, wait until you receive it before filing Form 1040X.

 

Amended returns must be mailed, they cannot be e-filed.  

View solution in original post

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