Should I send in an amended form if I voluntered for a medical program without pay but did receive $1100 expense $.

[042816 · Accepted solution]

I voluntered for a Study into (Wet Macular eye Degeneration) for which I rec'd needles in the eye for approx a year for which I rec' $1100. $100 per month.  I rec'd a "1099 misc" form indicating I may have to pay taxes on this amount - this was not a salary but rather for expenses. I had already submitted 2020 tax return forms and already, about 2 months ago, rec'd a return - now I received this form 1099 misc with this $1100 . 

3 questions - Do I have to submit a revised tax return after it's all been done. And do I have to pay tax on expenses i received for participating in voluntary medical Study and  can I ignore a revised submittal until I hear from someone from IRS if I do//  (THE WHOLE THING SEEMS CRAZY TO ME)  If I have to pay taxes on this I would rather add the $1,100 in next years Tax Return

[AmyC]

1. Yes. You need to file an amended return.

2. Yes, you need to pay the federal, Medicare and Social Security taxes on the money.

3. You can ignore it until the IRS contacts you in about 4 years and charges you interest plus penalties for all the time you let this go without filing. Not a good idea.

You can only file 2020 income on a 2020 return. You are not allowed to add it to your 2021 forms.

This is what you need to do and soon so you can e-file it. You have until May 17 to pay without penalties and interest.

Once your original return is accepted and the finances are settled, you can file an amended return. 

• Save a copy of the original return before doing an amended return. See: 
  • how to file an amended return.
  • I need to amend my state return.
  • Can I e-file my amended state return?
  • Can I e-file my 1040X to amend my return?
• Pay additional tax. Taxpayers who will owe more tax should file Form 1040-X and pay the tax as soon as possible to avoid penalties and interest. They should consider using IRS Direct Pay to pay any tax directly from a checking or savings account for free.
• Track amended return status online. Taxpayers can track the status of their amended tax return in English and Spanish using Where’s My Amended Return?  Amended returns take up to 16 weeks to process and up to three weeks from the date of mailing to show up in the system.