Never reported PayPal earning from 2014-2015. Didn't know it was SE tax and whatever earn over $400 need to be reported. Can I amend my 2014 and 2015 tax return in 2019?

[davidcopher]

Hi guys,

So, in a huge problem, I think there is a chance of me being audited in the future and to make things right before the audit, I want to pay all of my due taxes and come clean. 

So as the question asks, I have an earning of around $7000 in 2014 and $10000 in 2015 that I never reported from PayPal since they didn't issue 1099-k but I later realized it is my obligation to report all my income whatever I make and it is considered self-employed income. So do I still have a chance of amending my 2014 and 2015 tax return to include this SE taxes? 

Any help would be appreciated and thank you for helping. 

[Zbucklyo · Accepted solution]

Yes you can.  TurboTax no longer supports new purchases of software for those years, or amending if you filed with them online, but if you still have the software installed on a computer, you can still use it.

Alternatively, you can try to amend the return by hand, or pay a tax professional to do so.

[davidcopher]

Any idea if it is a good idea to amend it and report the income now or let them find out during audit? Thanks.

[davidcopher]

Also, I found out that there is no way to amend tax return that is prior 3 year old. There is still hope for me to amend 2015 tax return but 2014 do you think I still have chance since it is been 4 years.

[Zbucklyo]

You are better off amending now and putting this behind you.  Interest and penalties will increase as time goes on.  You can still amend 2014 and 2015.  It is only if you are expecting a refund by amending it is too late to claim.  If you owe money, it is not to late to amend.

[davidcopher]

Thanks a lot, Zbucklyo! Appreciate the helps.