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Level 1

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

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!
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Employee Tax Expert

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

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.

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Highlighted
Employee Tax Expert

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

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.