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bonsaique1
New Member

Problem with 1099-NEC & Amended Return

When I originally filed my 2020 taxes, I had originally reported $27,126.25 in 1099-NEC income. Subsequently the bookkeeper sent me a corrected form showing $21,426.25.  I then filed an amended return that corrected to 1099-NEC amount & explained in Part III that bookkeeper sent me an eroneous form.  When I completed the amended return, it showed I had overpaid by $804 and I expected to received that amount back from the IRS.  It took them over a year to process and I've been on the phone with them twice as they say the file is closed and they owe me nothing. How could that possibly be when my business income went down $5700.00?  

5 Replies
NCperson
Level 15

Problem with 1099-NEC & Amended Return

@bonsaique1 what were the expenses you provided on Schedule C?  is it possible that you reported a loss on Schedule C and with the amendment it is now simply less negative????? 

 

what was on line 4 of Schedule 2 originally???  

Critter-3
Level 15

Problem with 1099-NEC & Amended Return

Look at the form 1040X …

Column A should have the figures from the original return, Column C the corrected figures and Column B the differences between the other 2 which needs an explanation on page 2 of the form 1040X.

If you completed it correctly you will see an entry on either line 16 OR 18:

On line 16 should be the amount you paid with your original return. If you paid nothing already then this line should be zero.

On line 18 should be the amount of your original refund you received.  If you have not received your refund yet then you need to wait for it.  If the refund changes from what you expected then this line must reflect that change.

Then you will see your extra refund on line 22 OR  the new balance due you need to pay on line 20.

fanfare
Level 15

Problem with 1099-NEC & Amended Return

$855 would be my calculation of  the Self Employment tax - Schedule SE - on your corrected amount of income.

After side effects of  canceling a deduction of 1/2 of that, that's about right, and you should get the $804 back.

 

Schedule SE had to be attached if you mailed in Form 1040-X.

 

@bonsaique1 

fanfare
Level 15

Problem with 1099-NEC & Amended Return

Call IRS a third time and tell them you want your SE tax refunded.

@bonsaique1 

bonsaique1
New Member

Problem with 1099-NEC & Amended Return

You were correct.  I started my amended return from scratch (again), and came up with the same conclusion - the IRS owes me $804.  They say they owe me nothing and we are even.  I ended up highlighting every line that was different (than the original return) and wrote a cover letter.  I'll wait another year and if nothing happens again, I'll go to a local IRS office.  Just a big nuisance for a small amount of money.  Thank you for your reply!

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