Do I need to file an amended federal tax return if it didn't affect my return at all?

[kevin-shabel]

Originally I didn't include $3000 from a 1099-MISC from box 7 (non employee compensation). I used that $3000 to pay a contractor, so it wasn't actually taxable income and it didn't affect my return (federal or state). Turbo Tax even gave me a notification asking if I was sure I needed to file an amended return because there was no difference. I want to make sure I need to send this or not before I mail it. Help!

[MargaretL · Accepted solution]

My recommendation is to amend your tax return.  Theoretically, you don't need to amend your return if it doesn't change your refund/tax liability. Practically, however - the IRS has a copy of the 1099-MISC and will be looking for it on your tax return; they also don't know that you have expenses against that income.  To avoid a CP2000 letter asking your for tax due on the $3000 and missing form, amend the return to show that you report the income and claim the expenses against it.